HP, Foxconn ink cloud server deal

The joint venture between the two computing giants aims to place cloud-ready servers in the data centers of the world's largest service providers.

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Computing giants HP and Foxconn announced Wednesday plans to team up for the creation of a new line of cloud-optimized servers, specifically targeting service providers like Google and Amazon.

For the servers, low total cost of ownership, scale, and service and support are being touted as benefits of the line, which will complement HP's existing ProLiant server portfolio, including Moonshot.

The companies stressed that cloud-readiness will be central with the new line, as its seen as key component to landing placement in data centers of hyperscale businesses — a market area IDC expects to grow at a compound annual rate of 15 to 20 percent between now and 2018.

HP chief executive Meg Whitman said the partnership will put to work the manufacturing expertise of Foxconn and the compute power of HP:

With the relentless demands for compute capabilities, customers and partners are rapidly moving to a New Style of IT that requires focused, scalable and high-volume system designs.

Financial terms of the deal were not disclosed. 

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