HP AND FOXCONN have announced a joint venture to create a line of cloud optimised servers for service providers.
The venture involving a non-equity, strategic commercial alliance will see the pair offering a range of products. Particulars and specifications are yet to be announced but the companies are aiming to target low total cost of ownership (TCO), scale and service.
This announcement is separate to the existing HP Proliant server portfolio, which includes the software defined server codenamed Moonshot.
HP CEO Meg Whitman said, "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. [The partnership] will enable us to deliver a game-changing offering in infrastructure economics."
News of the alliance will raise eyebrows at Apple, which reportedly returned an eight million unit shipment of iPhones to Foxconn last year, describing them as "dysfunctional" and "non-compliant".
HP has had its own troubles recently, after settling two lawsuits this month, one to the former shareholders of Palm over its handling of WebOS, and another that revealed that HP executives were guilty of corruption in negotiations for lucrative contracts. Total payouts across the two settlements totaled $165m.
The HP joint venture with Foxconn will take effect from 1 May, when we hope to find out more details about what it will entail. µ