As recession hits IT, HP tries variable pricing on services

10.03.2009

But he added that HP also may be looking at the competitive challenges that outsourcing and IT services vendors like EDS face from services, which typically are based on variable pricing.

In addition to the new pricing options, HP is changing the way it for customers, also to give them more choices.

Data centers typically are built to one of four reliability levels, as defined by Uptime Institute Inc. in Santa Fe, N.M. Tier 1 is the lowest level and Tier 4 the highest, with redundant systems and the least potential for downtime.

HP now will offer customers the ability to set up data centers with different tier levels, a move that could reduce building costs by as much as 25%, said , vice president and general manager of the company's HP Critical Facilities unit. That's the new name for what was , a data center design firm that HP acquired early last year.

The design process will incorporate a "building block" approach, with variable levels of redundancy and fault-tolerance, Gross said. He added that users will be able to adjust the amount of space given to the different tiers as business needs change.