Hewlett-Packard Korea: HP Korea Downsizes Unix Server Business | BusinessKorea

Tuesday, July 28, 2015

Headquarters building of HP Korea, one of the foreign limited-liability companies in Korea.
Headquarters building of HP Korea, one of the foreign limited-liability companies in Korea.
13 December 2013 - 3:28pm

HP Korea is reported to have drastically reduced sales personnel for its Unix server business in line with the reorganization of its server unit.

According to industry sources on December 12, the IT company currently has fifteen sales representatives in charge of Unix products in its server unit. The total number has decreased by more than half since early 2013. Industry analysts are saying that because of a steady decline in sales of Unix servers, the company decreased its workforce to use an indirect sales method utilizing distribution channels rather than a direct one. 

Hewlett-Packard Korea unified the x86 server and Unix server businesses last month. The recent reorganization can be interpreted as a strategy aimed at downsizing customers using Unix servers, as the global market’s center of gravity is moving toward the x86 server. 

The company’s sales personnel for Unix products are composed of five people in charge of important customers such as Samsung, LG, and SK, three for finance, one for manufacturing, two for nonstop servers, and four for technical support. Among those, only ten people are entirely responsible for Unix products, even though there are other staff that jointly suggest x86 and Unix servers, or sell those products via distribution networks.

An industry source explained, “Competitors such as IBM and Oracle have more than 30 sales personnel for Unix servers,” adding, “As far as I know, the layoffs are attributable to a lack of budget stemming from a steady decrease in Unix sales.”

An official at HP Korea responded by saying, “During the reorganization process, sales representatives were not necessarily laid off. Rather, we haven’t hired additional workers since 2012 to replace those who already quit.”


More Like This

Headquarters building of HP Korea, one of the foreign limited-liability companies in Korea.
Unix Server Business
Tuesday, 10 March 2015
HP Korea, for the first time in five years, has reclaimed the number one position in the local Unix server market in the final quarter of last year. IBM Korea has lost its iron-fisted grip on the...
Struggle for Survival
Wednesday, 24 December 2014
Struggling UNIX server makers are strengthening their Linux strategy in line with the open-source application environment. The move is aimed at maintaining remaining customers, since users are...
Restructuring of IBM Korea
Monday, 13 January 2014
IBM Korea will reorganize its mainframe and x86 server business units (BUs), which are showing poor performance these days.  According to industry sources, IBM Korea is planning to combine its...
A Huawei E9000 Blade Server Chassis.
Chinese Offensives
Tuesday, 15 July 2014
Server vendors based in China are showing steep growth. They are using growth in the domestic market as a springboard to launch new offensives to dominate the global market. Thus, the local server...
No Follow-up Maintenance
Tuesday, 25 February 2014
Customers of IBM Korea fell into confusion due to Lenovo’s decision to take over the x86 server business of IBM. No follow-up measures concerning product maintenance has come out yet. According to...
A Cisco Unified Computing System Open Grid Scheduler. (Photo by Raysonho via Wikimedia Commons)
Changed Computing Environment
Thursday, 11 September 2014
Cisco Systems is increasing its presence in the domestic x86 server market.   According to market research firms such as Gartner and IDC, Cisco recorded a year-on-year growth of 35 percent in the...

Copyright 2013 BusinessKorea Co., Ltd.
301 Samdo Building, 12-1
Yeoido-dong, Yeongdeungpo-gu
Seoul, Korea 150-010
Tel: +82-2-578-3220
Fax: +82-2-578-3224
Email: contact@businesskorea.co.kr


This month Business Korea is sponsored by: