Two years ago this week we reported that Hewlett-Packard would be spending $1 billion on developments for HP Helion, its private and public cloud offering for enterprise customers. The spending was scheduled to take place over the coming two years, so now's a good time to examine the ceiling of clouds for HP. It turned out to be lower than expected.
That spending plan for Helion outlasted the public version of the cloud service. Within a year of the $1 billion mission statement, HP was saying the company had no business in a cloud space dominated by Amazon Web Services and others. By this January, the final cloud customers at the Helion public service had moved their clouds elsewhere. HP Helion private clouds march onward in a world where the vendor controls all elements in a deal, rather than competing in a tumultuous market. A private cloud behaves more like the HP 3000 world everybody knows: a means to management of dedicated resources.
The use of cloud computing to replace HP 3000 manufacturing applications is reaching beyond hypotheticals this summer. Terry Floyd, founder of the manufacturing services firm The Support Group, has been working with Kenandy to place the cloud company's solution in a classic 3000 shop. A project will be underway to make this migration happen this summer, he said.
The 3000 community that's been moving has been waiting for cloud solutions. Kenandy is the company built around the IT experience and expertise of the creators of MANMAN. They've called their software social ERP, in part because it embraces the information exchange that happens on that social network level. But from the viewpoint of Floyd, Kenandy's was waiting for somebody from the 3000 world to hit that teed-up ball. Kenandy has been tracking 3000 prospects a long time. The company was on hand at the Computer History Museum for the ultimate HP3000 Reunion in 2011.
The Kenandy solution relies on the force.com private cloud, operated by Salesforce.com. Smaller companies, the size of 3000 customers, use Salesforce. The vendor's got a force.com cloud for apps beyond CRM. Floyd said in 2015, "When the project kicks off next year, because we think Kenandy is a good fit for them."
The longer that small companies wait out such cloud pushes as HP's $500 million per year, the better the value becomes for getting onto their cloud. The effort migrates datacenter ops outside company walls, a big shift in 3000-heyday thinking. After its public cloud flame-out, HP ultimately worked to convince companies to build their own private clouds. The option that's firming up this summer is renting cloud apps from firms like Kenandy and Salesforce.
Floyd and his company have said there's good value in switching to cloud-based ERP for some customers. Customization of the app becomes the most expensive issue.