HP has announced that on January the 31st the company will officially shut down Helion, its public cloud offering.

Many industry leaders are reporting that the decision has been made due to HP’s inability to compete within the public cloud market. Concerns for the future of HP’s cloud offering were initially brought forward by the New York Times earlier this year, when Bill Hilf, Senior Vice President and General Manager was quoted as stating:

“We thought people would rent or buy computing from us. It turns out that it makes no sense for us to go head-to-head.”

HelionPrior to this statement, Helion had also come under fire for being too small and unfocussed within the market.
The official announcement to shut down HPs Public Cloud service was made in a blog last month, where the company cited a change in customer demand as the initial cause of the closure, however, many industry leaders are sceptical of this.

“Public cloud is also an important part of our customers’ hybrid cloud strategy, and our customers are telling us that the lines between all the different cloud manifestations are blurring. Customer[s] tell us that they want the ability to bring together multiple cloud environments under a flexible and enterprise-grade hybrid cloud model. In order to deliver on this demand with best-of-breed public cloud offerings, we will move to a strategic, multiple partner-based model for public cloud capabilities, as a component of how we deliver these hybrid cloud solutions to enterprise customers.

Therefore, we will sunset our HP Helion Public Cloud offering on January 31, 2016. As we have before, we will help our customers design, build and run the best cloud environments suited to their needs – based on their workloads and their business and industry requirements.”

Moving to the future, HP is now investing in making sure that its data centre platform works seamlessly with Amazon Web services Cloud. Tech insider’s Matt Weinberger has suggested that this is an “if you can’t beat them, join them” situation.

Richard May, Managing Director of virtualDCS said: Many existing IT industry giants believe that because as ease of entry into the market is low for them, that they can simply walk in and become industry leaders. Unfortunately for them, this isn’t the case and dominating the market isn’t as easy as they think.”

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