HP muscles in on Amazon: But will the Helion Network work?
HP is making its OpenStack-based Helion cloud tech available to partners and resellers in a desperate bid to take on Amazon’s mammoth cloud. The initiative, called the Helion Network, is designed to encourage partners to create their own services to compete with Amazon.
Announced at its HP Discover event in Las Vegas, the move represents a startling turnaround for a company which has always prided itself on its top-down tech. Previously, HP’s Helion was only available as a public cloud. But HP, like many other tech firms, is scrambling to find a new business model to compete with the might of Amazon, and it hopes this new strategy will buy it the time it needs to foster a loyal customer base in the new era of the cloud.
HP is going to invest $1 billion into OpenStack over the next two years to make Helion viable, the company said. The plan is to turn the open-source project into something capable of giving Amazon, Google and Microsoft a real run for their money. The Helion Network will also throw a lifeline out to cash-starved resellers and channel companies who’re struggling in a world of dwindling margins. Meanwhile, telecommunications firms and small hosters will be able to beef up their own clouds with a technology led by one of the world’s biggest tech giants.
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