HP today outlined the results of its three-year IT transformation and laid out the company’s IT strategy to support future growth for fiscal year 2009 and beyond.
As a result of the effort, HP has reduced its IT operating costs by approximately half; provided more reliable information for executives to make better business decisions; and, established a more simplified and dependable IT infrastructure that provides improved business continuity and supports the company’s future growth.
The initiative began shortly after Mott joined HP in July 2005. Starting in fiscal year 2009, the transformation will lower IT costs by more than $1 billion per year from fiscal year 2005 levels. This cost reduction is even more impressive considering HP added more than $25 billion in revenue during the three years since the transformation began.
The transformation focused on five major initiatives: next-generation global data centers, portfolio management, workforce effectiveness, building a world-class technology organization and a true enterprise data warehouse. Through aligning its entire global organization on these five initiatives, HP has reduced complexity and added significant capability and quality of service.
The HP IT organization now operates under a strategic framework in which teams are deployed to deliver more business innovation through a smaller number of global and common applications. These applications are running in the next-generation data centers, where the technology is constantly refreshed in modular-designed white space.
By creating global and common applications, HP IT is able to focus on new capabilities and devote 80 percent of IT employees to innovation that is aligned with business strategies and future growth opportunities.