Storage sparkles and server sales soar at HP Middle East

HP’s enterprise storage and servers (ESS) division put in a stellar Middle East performance in the first quarter of 2005. HP has no plans to rest on its laurels and remains committed to developing new partnerships and innovative go-to-market strategies in the region.

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By  Stuart Wilson Published  June 4, 2005

HP’s enterprise storage and servers (ESS) division put in a stellar Middle East performance in the first quarter of 2005. HP has no plans to rest on its laurels and remains committed to developing new partnerships and innovative go-to-market strategies in the region. According to IDC, HP boosted its share of the UAE x86 server market to 74.7% with sales more than doubling year-on-year. HP claims that it has witnessed similar growth across the wider Middle East region. Away from the server space, HP has also declared the first quarter as a record quarter for its storage business in the Middle East. Business critical systems (BCS) sales growth hit 28% year-on-year. Martyn Molnar, ESS business manager at HP Middle East, said: “Moving forward, attracting solution partnerships is our main focus. We have the broadest portfolio of IT products and solutions on the market and the largest regional presence to deliver within the Middle East.” “We have some excellent partnerships to date, which we will continue to develop, but our focus is on developing new HP relationships and joint go-to-market strategies that can deliver true value for the customer. We plan on announcing a series of high profile customer wins in the near future, further demonstrating HP’s commitment to the region,” he added. Molnar attributes the success of the ESS division to the extensive product portfolio and its ability to combine high-end hardware with relevant services expertise. “I believe much of our success lies in the fact that we are able to deliver strong products and a wide range of services portfolio,” Molnar explained. “We have driven towards more focused engagement in key accounts and created a more balanced portfolio, with the result that our customer base has never been stronger in the enterprise sector. We firmly believe that the future will bring even greater growth numbers throughout the region, and our commitment to our customers will remain as powerful as it is today.” While HP continues to enjoy more than 70% x86 server market share in the combined markets of the UAE and Saudi Arabia, the figures remain lower outside these core markets. According to Molnar, HP holds 46% market share in Egypt and 22% in the rest of the Middle East. Storage unit shipments climbed 57% year-on-year as HP set a new record for enterprise virtual array (EVA) products in the Middle East. Putting HP’s Middle East performance in a global perspective, the ESS division’s regional performance stacks up well against the global ESS results for the second quarter ending April 30th 2005. ESS global sales in the second quarter climbed 6% year-on-year to US$4.2bn with operating profits soaring 55% to US$184m, or 4.4% of the unit’s sales. The second quarter ESS results include US$24m in workforce reduction costs. Globally, second quarter industry standard server sales climbed 12% year-on-year to US$2.37bn, with BCS sales climbing 2% to US$991m. Storage sales were down 6% year-on-year at US$825m. Across all HP business units, Europe, Middle East and Africa (EMEA) second quarter sales climbed 10% year-on-year to US$9.1bn — 42% of global sales.

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