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HP’s data-center consolidation happened in stages: an executive update described a reduction from 300 centers to 85, and HP later reported completing the consolidation of 85 internal IT data centers into six locations in 2008. The six facilities were in Atlanta, Houston and Austin, Texas. HP forecast substantial savings and efficiency gains, but the available accounts describe those figures as expected benefits—not verified final results.
What HP consolidated—and when
The figures 300, 85 and six describe different milestones, not conflicting counts from the same date. In remarks on HP’s global operations and IT, executive Gilles Bouchard said the company had reduced its data centers from 300 to 85. HP’s 2008 Global Citizenship Customer Report later said it had completed the consolidation of 85 internal IT data centers into six locations during 2008.
The first figure belongs to interim progress in a broader IT aggregation effort; the later report describes the completed consolidation. The reports concern HP’s internal IT infrastructure, not a general count of customer-facing data centers.
The project timeline
2004: reported interim progress
Bouchard’s executive remarks connected the data-center reduction—from 300 to 85—to other changes in HP’s internal IT: applications fell from 7,000 to about 4,000, and servers from 25,000 to 19,000. The same account said IT spending had declined from 4.6% to 3.6% of revenue. These were reported progress figures; future targets mentioned in the remarks should not be confused with completed results. Read HP’s executive remarks.
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2006: six-site plan announced
Contemporary coverage described HP’s plan to consolidate 85 data centers into six facilities, with two each in Atlanta, Houston and Austin, Texas. The plan was associated with a forecast of approximately $1 billion in IT-spending reductions in the coming years. That was an announced expectation, not evidence that HP ultimately realized the full amount. Data Center Knowledge’s report on the plan and DataCenterDynamics’ coverage of the savings forecast describe the announcement.
2008: HP reported completion
HP’s Global Citizenship Customer Report 2008 said the company completed consolidation of 85 internal IT data centers into six locations in three US cities in 2008. This is the company’s reported completion milestone. Read the report.
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What HP expected the consolidation to deliver
HP’s 2008 annual report listed a 60% reduction in annual data-center energy consumption and a 250% increase in processing power as expected benefits of the transformation. These are company-stated expectations, not independently verified measurements of the completed project. The annual report does not establish in the material cited here whether HP achieved either figure. See HP’s 2008 annual report.
The operational aim was also framed in terms of dependable, simplified operations. In the 2006 announcement, HP executive vice president and CIO Randy Mott said: “The data centers will provide our business with more dependable, simplified operations.”
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How to read the headline figures
- 300 to 85: interim reduction reported by Gilles Bouchard in remarks on HP’s broader internal IT effort.
- 85 to six: the 2008 completion account for HP’s internal IT data centers, into six locations across three US cities.
- Approximately $1 billion: a forecast of future IT-spending reductions reported with the 2006 plan; the sources cited here do not establish realized savings.
- 60% less energy and 250% more processing power: expected benefits listed in HP’s 2008 annual report, not confirmed final results.
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