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Foxconn and HP Announce A Game-Changing Joint Venture Agreement of Server Market

By Korbin Lan
Published: May 01,2014

HP’s existing ProLiant server portfolio

TAIPEI, Taiwan — HP and Foxconn announced a joint venture agreement to create a new line of cloud-optimized servers specifically targeting service providers. Hon Hai chairman Terry Gou said that will work with HP to inject new vitality into server market with "subvert industry ecosystem" approach.

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Creating innovative servers and solutions has been a cornerstone of the relationship between Foxconn and HP for several decades and today’s announcement further strengthens the partnership. Foxconn’s ability to deliver superior value throughout the supply chain, together with HP’s industry compute leadership and industry-recognized service and support, will deliver new world-class computing platforms.

The new product line will specifically address compute requirements of the world’s largest service providers by delivering low total cost of ownership (TCO), scale, and service and support. The line will complement HP’s existing ProLiant server portfolio, including Moonshot.

Meg Whitman, president and chief executive officer of HP, yesterday personally headed Taiwan's Hon Hai headquarters in Tucheng, to sign agreement with Terry Gou.

“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,” said Meg Whitman, president and chief executive officer, HP.

“This partnership reflects business model innovation in our server business, where the high-volume design and manufacturing expertise of Foxconn, combined with the compute and service leadership of HP, will enable us to deliver a game-changing offering in infrastructure economics.”

“Cloud computing is radically changing the entire supply chain for the server market as customers place new demands on the breadth of design capability, value-oriented solutions and large-scale and global manufacturing capabilities,” said Terry Gou, founder and chairman, Foxconn.

“In partnership with HP’s server leadership, we are embracing this new opportunity to change the industry, capture growth in this emerging market, and deliver end-to-end value as we expand our global leadership in design and manufacturing.”

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