Hewlett-Packard will increase its innovation spend and curb rising costs as it aims to hit the $100 billion revenue mark this year, says CEO Mark Hurd.
Delivering his keynote address at the HP Technology Forum 2007, held in Las Vegas last week, Hurd said there is a $1.1 trillion market for the company to chase.
HP plans to increase its capital investment, Hurd said, so that its innovation spend totals 70% of its IT budget and maintenance takes up 30%.
This would be achieved through leadership, process and governance, and will require the commitment of CEOs, CIOs and business leaders within the group.
As part of achieving greater efficiency, HP aims to reduce the amount of power and energy it uses for cooling by as much as 50%. This saving would amount to enough energy to power the city of Palo Alto, in California, where the company is headquartered, for a year.
Hurd stated "green" is not only about being environment-friendly, but also about a "great outcome" and the efficiency gained and money saved.
Streamlining data centres
Last year, HP said it was consolidating its 85 global data centres into six centres in the US, which will also drive greater efficiency.
Hurd said the company is also looking at virtualising a big part of its data centre infrastructure, with a great focus on using its own management software and integrating all hardware and mission-critical applications.
At the completion of this transformation, Hurd sees the company spending about 80% of its IT budget on innovation and 20% on maintenance.
Despite looking at cost savings, Hurd stated HP is seeking to get "the right kind of people, in the right place, at the right time", to extend its customer reach.
During the last 12 months, HP added 1 000 sales people, two-thirds of whom are part of the Technology Solutions Group - selling to business and large enterprises. This was a move to address a resource shortage within the company, Hurd stated.
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