SAP AG 2006
Hewlett Packard’s Merced Decision!
Q.1) In summer 1998, what is the position of the Enterprise Server Group (ESG) in its industry? How has it evolved? Why?!
!
ANS 1. ESG(Enterprise Resource Group), was formed by HP in 1997 to focus on enterprise computing. It provided more than 1.3 Million UNIX based systems(HP-UX).
The sales of HP were almost up to $10B in 1997 where the total market was estimated to be over $60B. !
!
HP was the lead supplier of UNIX based servers through the years 1993 to 1997.
On the other hand, SUN Microsystems were also competing with HP for UNIX servers and were emerging strong in the market. By summer 1998, SUN was a leading UNIX server vendor with their own proprietary operating system SOLARIS. They captured around 40% of the market share.!
!
ESG evolved itself by combining UNIX systems with RISC chip which increased
the performance and speed of operation. ESG built complex and necessary application systems for businesses and for enable information technology infrastructure through web services for future.!
!
To compete with SUN and other independent server vendors (ISV’s), HP
reinstated focus on ESG to develop UNIX-RISC based computer systems.!
!
!
!
!
!
!
!
Q.2) Why did HP get involved in developing IA-64 architecture? Analyze the assumptions and the strategy which led to their initial involvement decision.!
!
ANS 2. HP was one of the leading RISC-UNIX based computer system vendor in contrast with SUN Microsystems, IBM and other ISV’s. Whereas Intel’s Pentium Pro
Microprocessor and WINDOWS NT combined to form a CISC based computer system known to be as WINTEL which were capturing the low-end market due to its low cost.!
Though it captured only 9.3% of market, sales of products increased by 66% from 1996 to 1997.!
!
Although RISC chips progressed in performance, it was approaching the limits of
its performance. The diminishing volumes of RISC chips foretold the need for price
Q.1) In summer 1998, what is the position of the Enterprise Server Group (ESG) in its industry? How has it evolved? Why?!
!
ANS 1. ESG(Enterprise Resource Group), was formed by HP in 1997 to focus on enterprise computing. It provided more than 1.3 Million UNIX based systems(HP-UX).
The sales of HP were almost up to $10B in 1997 where the total market was estimated to be over $60B. !
!
HP was the lead supplier of UNIX based servers through the years 1993 to 1997.
On the other hand, SUN Microsystems were also competing with HP for UNIX servers and were emerging strong in the market. By summer 1998, SUN was a leading UNIX server vendor with their own proprietary operating system SOLARIS. They captured around 40% of the market share.!
!
ESG evolved itself by combining UNIX systems with RISC chip which increased
the performance and speed of operation. ESG built complex and necessary application systems for businesses and for enable information technology infrastructure through web services for future.!
!
To compete with SUN and other independent server vendors (ISV’s), HP
reinstated focus on ESG to develop UNIX-RISC based computer systems.!
!
!
!
!
!
!
!
Q.2) Why did HP get involved in developing IA-64 architecture? Analyze the assumptions and the strategy which led to their initial involvement decision.!
!
ANS 2. HP was one of the leading RISC-UNIX based computer system vendor in contrast with SUN Microsystems, IBM and other ISV’s. Whereas Intel’s Pentium Pro
Microprocessor and WINDOWS NT combined to form a CISC based computer system known to be as WINTEL which were capturing the low-end market due to its low cost.!
Though it captured only 9.3% of market, sales of products increased by 66% from 1996 to 1997.!
!
Although RISC chips progressed in performance, it was approaching the limits of
its performance. The diminishing volumes of RISC chips foretold the need for price