HP Korea just introduced HP blade system C-class as upgrade to its blade lines. Hp is a second market leader just behind IBM globally but domestically, with its current 61.7% market share, will try to widen the gap with IBM to keep its lead.

On past 19th, HP Korea from its press conference announced release of its next generation blade server system ‘HP blade system class-c’ to begin promotion in domestic Korean market, which is said to be give savings in maintenance cost to about half for data center companies.

Thanks to its superior marketing strategies, HP Korea has sold over 1000 blade servers in 4th qtr. Last year. With its new C-class (grade version to existing P-class) HP is looking to further dominate the current market with targeting specifically to data centers and IDC (Internet Data Center) market.

Electricity consumption/Cooling system and more effective administration
C- class offers improvements in Virtual function and Temperature control and Administration

In virtual function category, HP added ‘Virtual Connect Architecture’ technology to allow one simple connection to minimize networking problems for the users. The virtual connectivity environment between the server and LAN/SAN (main IT network infrastructure) makes it more effective.

In management category, it added new ‘Insight Control Management’ technology to system administrator. Its simplified ‘On-Board Administrator’ uses simple words and graphics and with web browser and 2” two way LCD windows allows customers much easier control of the C-class infrastructure.

Lastly, C-class temperature control added a more efficient cooling system without compromising any processing performance. An affiliate form HP Korea explained that using C-class architecture over other rack mounted servers, saves more than 40% in electricity consumption.

Compatibility and existing stockpile a problem
However, HP’s initial rollouts with C-class could face some collision with competitors in the market. HP Korea was only able to keep its 1st place because of its winning marketing strategy with Its solid partners (3 distributors, 9 resellers).

However, the new C-class Blade System products are incompatible with HP's existing P-class blades and enclosures. All upgrades to C-class will make existing customers confused and unhappy with incompatibility issue with their P-class systems. In addition, for that reason existing P-class will be sold at clearance prices beginning as early as second half of next year. HP Korea could not give adequate answer to that dilemma and avoided the issue.

HP Korea however said there isn’t that much stockpile of the P-class and its targeting the P-class and C-class in separate markets. HP Korea’s manager Sung-Soo Kim said “The C-class carries Intel’s new Woodcrest processor and with network functionality to focus on new customers and the P-class will be reposition to AMD’s ‘Opteron’ processor to aim at small and medium size businesses. The market will eventually migrate to the C-class but P-class will also last for longtime too.”

IBM not concerned with new C-class!
HP Korea targets public agencies, communication, manufacturing and industrial data center companies for the C-class customer profiles and with IDC as its main market.

In recent, rack servers and tower servers with apparent migration to the blade servers and cases with IDC customers requesting for the blade servers are on the rise too. HP Korea’s director Hoon Kim said, “with more efficient power and cooling that can save up to half of the power consumption, the IDC will receive added advantage. We are currently in talks with main IDC to bring in the blade server to their market.”

In the meantime, IBM is not showing too many concerns to the new C-class. It feels that the C-class is only an upgrade to the existing product that had network and cooling method flaws that changed over to its IBM infrastructure system.

IBM Korea’s deputy chief Han-Shin Myung said “IBM’s products with its constant upgrades to the its existing models do not have any compatibility issues and have plans to roll out new models that use AMD and Intel’s processors with in 3rd quarter this year. HP leads the current market share but with this introduction of C-class servers only brings more acknowledgments to IBM’s blade center.”