Strategy for market entry: the case of HP s data center infrastructure management solution

Abstract

DCIM is a relatively new idea with discussion about such solutions starting around 2008 triggered by the lull in the industry. Corporations not just curtailed their investments but also focused on better capacity utilization, space utilization, power utilization and effectiveness of their datacenters. As a result, not just large IT equipment vendors, but facility firms, IT service providers and many startups have come up with their own DCIM implementations. Often key differences exist between the DCIM vendors and their capabilities, with each one addressing typical needs of customers. This large and fragmented vendor offerings of DCIM solutions, coupled with complex and multiple ways of pricing of DCIM solutions make it difficult for potential users of DCIM to make a choice and get a clear view of how a given DCIM solution will be able to meet the requirements on availability, utilization and efficiency and at the same time result in cost reduction. The DCIM market is evolving and simultaneously growing at a brisk pace. This presents an attractive opportunity for HP to enter this market. This report outlines the recommendation for HP s strategy to enter the DCIM market along three principal areas: a) The expected features of a DCIM Solution and gap analysis compared to HP s current offerings. b) Need for building awareness about DCIM solutions and its benefits for data center administrators as well as the whole IT community. c) Pricing strategy and revenue model for HP s DCIM solution.