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HP consolidating data centers

HP would consolidate 85 data centres around the world into six large facilities in the United States.

india Updated: May 18, 2006 11:42 IST
Reuters
Reuters
None

Hewlett-Packard Co on Wednesday said it would consolidate 85 data centres around the world into six large facilities in the United States, hoping to save $1 billion annually in coming years.

Shares of HP, which reported better-than-expected profit on Tuesday, rose more than 4 per cent in early trading.

HP said its information technology infrastructure would be run in Atlanta, Houston and Austin, Texas, with two facilities in each city.

Part of the savings will come from a 25 per cent drop in utility costs, the company said. The centres, which would be used for HP's internal requirements, would be designed so that they could be managed remotely. Additionally, the sites are considered less vulnerable to natural disasters, the company said.

HP also plans to save on real estate and data networking costs, said spokesman Mike Moeller. The company also has received some tax incentives from some localities, he said.

Moeller declined to say how many jobs would be cut in the move, but said they were included in layoffs that the company announced last year. HP in July 2005 said it would cut 14,500 jobs. It raised that number to 15,300 in November.

HP will continue to operate more than 70 data centers in 23 countries that provide technology outsourcing and other services for its customers.

HP shares rose $1.27 to $32.38 on the New York Stock Exchange.

First Published: May 18, 2006 11:03 IST