HP's Shares Rise More Than 4 Percent
Plans To Consolidate 85 Data Centers
In the midst of a long-awaited turnaround, Hewlett-Packard Co. announced second-quarter earnings that were higher than expected. Hewlett-Packard's shares rose more than 4 percent to $32.44, in early trading.
HP, based in Palo Alto, Calif., said the earning increase was generated from growth in sales of more profitable computers and printers.
"HP delivered another solid quarter," said Mark Hurd, HP chief executive officer and president. "We grew revenue, expanded margins and generated record cash flow. At the same time, we continued to remain focused on executing our strategy and investing in the company's long-term success," he said in a news release.
Just over a year ago, HP asked Mark Hurd to be chief executive and cut costs while improving revenue, the company said.
In addition to HP shares rising, the company has announced plans to consolidate its 85 data centers worldwide into six larger centers located in three U.S. cities. The consolidation will result in the deployment of HP's IT infrastructure in two facilities each in Atlanta, Houston and Austin, Texas, the company's website said.
"Consolidating out data operations into six state-of-the-art centers will provide HP with strengths that are unmatched in the industry," said Randy Mott, executive vice president and chief information officer. "The data centers will provide our business with more dependable, simplified operations. The effort will enable faster delivery of new technologies, services and information and provide room for growth and improved business continuity, while significantly reducing cost," he said in a news release.
The company also said by enabling HP's IT organization to be more agile and offer better information for the company as a whole. The consolidation will help HP reduce its IT costs by roughly $1 billion in the coming years.
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