HP to invest $1 bn in open source cloud technology

HP is preparing to power ahead in the cloud arena, with plans to invest $1 billion (£590 million) in open source cloud technology over the next two years.

The money would go towards further development of its cloud products and services based on OpenStack, under the brand of HP Helion.

All of HP's existing cloud services would be brought together under the Helion umbrella along with HP's new open source OpenStack products.

HP would offer support as also protection for customers in the form of HP's OpenStack Technology Indemnification Program, which would guard against third-party patent claims relating to the OpenStack software.

According to HP, its Helion OpenStack-based public cloud services would be rolled out to 20 data centres across the globe over the next year and a half, with HP PartnerOne also set to go live, meaning cloud partners would be able to resell OpenStack-based products.

Martin Fink, executive vice president and chief technology officer of HP, commented, customer challenges today extended beyond cloud and included the management, control and scaling of applications in a hybrid environment that spanned multiple technology approaches.

He added HP Helion provided the solutions and expertise customers needed to select the right deployment model for their needs and obtain the greatest return for their investment.

HP was making a big drive cloud-wards, and this move followed the inking of a deal with Foxconn last week, an agreement which would witness the production of a new line of cloud-optimised servers aimed at cloud service providers, complementing HP's existing ProLiant server line.

According to commentators, the company clearly believed the cloud was a major revenue stream, and was prepared to push forward on multiple fronts, with Amazon and Google taking serious note.

Cloud services had become increasingly popular among both cash-strapped tech startups as also larger companies, relying on computers owned and operated by the likes of Amazon and Google, instead of buying the equipment themselves.

The two companies recently cut prices of most of their cloud computing services as other companies entered the field.

Cisco Systems, in March, laid out plans for offering cloud computing services, pledging to spend $1 billion over the next two years, even as Microsoft said it would increase its cloud storage offering for business users 40-fold.