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Hewlett-Packard is slicing 9,000 jobs and taking a $1 billion restructuring charge as it automates its data centers to handle enterprise cloud services.

HP previously consolidated its data centers in 2006 as it reduced its number of data centers from 85 to 6. This change is more about automating data centers so they can handle cloud services. In some ways, the news is good for companies such as Intel because HP will likely be adopting new chips that can replace many servers with just one. Also, HP said it expects to replace 6,000 of the positions eliminated with new sales people. HP expects to save something like $500 million to $700 million by 2013.

To read the full, original article click on this link: HP cuts 9,000 jobs and take $1B charge as it shifts to cloud computing | VentureBeat

Author: Dean Takahashi