From InfoWorld: Hewlett-Packard is partnering with Foxconn, the Taiwanese manufacturing giant best known for producing Apple's iPhone, to tackle the growing market for low-cost servers in cloud data centers.
The companies hope to combine Foxconn's large-scale manufacturing operations with HP's computer know-how to develop a new line of servers aimed specifically at big online service providers, they announced Wednesday.
Those service providers, which include firms like Amazon, Google, and Facebook, represent one of the few growth areas in the server business, but they typically want low-cost, no frills hardware designed to fit their needs.
Traditional server vendors like HP and IBM have had mixed results selling to those companies, who increasingly buy direct from Asian contract manufacturers like Quanta and Wistron, which are better set up for low-cost production.
HP hopes to tap into that low-cost model by tightening its partnership with Foxconn, one of the biggest contract manufacturers that already manufactures some of HP's ProLiant servers, as well as TVs, PCs, phones, tablets and servers for numerous vendors.
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