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

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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.”


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