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HP Targets Emerging Markets With Integrity Servers

Posted by iTech - 2006-04-16

Hewlett-Packard says sales in the emerging markets of Brazil, China, India, and Russia have led to triple-digit revenue growth for its Itanium processor-based Integrity line of servers in those countries.

Rich Marcello, executive VP and general manager of HP's business-critical servers business, says recent efforts in those countries have led to 17 new customer wins for the Integrity server line.

"Moving forward, we think our Integrity revenue growth will increasingly come from [those] countries, which is why we are putting in place a major initiative," Marcello said in a teleconference on Thursday. "These emerging markets share some common characteristics that play well into what we are trying to do with Integrity, and HP is one of only a handful of vendors that truly have a global R&D investment."

The Integrity-based servers are finding great interest in the emerging economies of those four countries because businesses and governments there are generally building out new infrastructures, not replacing or augmenting existing legacy systems, he says.

A key to the strategy is having a direct presence and investment in those countries, Marcello says. In Brazil, HP has 1,400 employees in 11 offices; in Russia, more than 700 employees; in India, more than 20,000 employees in 15 locations; and in China, more than 3,000 employees in 37 locations.



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