Bankruptcy

HP Repatriates Data Centers, Saves $1B

Hewlett-Packard facilities in Atlanta, Houston, and Austin will soon do the work of 85 data centers worldwide.
Stephen TaubMay 17, 2006

Hewlett-Packard announced plans to consolidate its 85 data centers worldwide into six large centers located in three U.S. cities.

The world’s second-largest computer maker estimates that this consolidation will reduce its spending on information technology by roughly $1 billion.

“Consolidating our data operations into six state-of-the-art centers will provide HP with strengths that are unmatched in the industry,” said executive vice president and chief information officer Randy Mott, in a statement. “The data centers will provide our business with more dependable, simplified operations. This effort will enable faster delivery of new technologies, services, and information and provide room for growth and improved business continuity, while significantly reducing costs.”

The company’s IT infrastructure will be deployed in two facilities each in Atlanta, Houston, and Austin. The locations were selected based on availability and affordability of space, power and network bandwidth, as well as a lower probability of impact from natural disasters, HP explained. The company added that the six facilities will be “lights out” data centers, capable of being managed remotely.

Any job cuts will be accounted for under last year’s announcement to reduce HP’s workforce, an HP spokesman told Bloomberg.