MSIS 2604 - Information Systems Policy and Strategy
Case Analysis – 1
Hewlett Packard’s Merced Decision
Siddhi Oka – W1282162
1. The following are the strategic assumptions that led to HP decision to work with Intel on the IA-64:
While allocating the required resources, senior management clearly assumed that IA-64 / Merced would eventually triumph. As it was meant to be faster than the currently existing RISC chips, IA-64 would succeed on the speed factor. ESG believed that as IA-64 was a bridge between RISC and CISC systems, it would be looked at as the first of its kind technology that could widely support enterprise applications built by Intel. However, the only problem was to contemplate when should this transition from RISC to IA-64 take …show more content…
In future, it would give economies-of-scale and give HP a competitive edge augmenting their in-depth knowledge about the technology besides giving them first-mover advantage. Over the years HP had developed deep knowledge, great acumen and skills in designing compilers and providing enterprise solutions. These joining forces with Intel to build a technology that was efficient, all-pervasive and user-friendly was only augmenting HP’s strengths further. With the limited resources at hand, and the competitors having made inroads into its domain, collaborating with Intel, having technological edge and a wide customer base, HP was right in assuming that this would be an opportunity to reclaim its position in the …show more content…
While HP stood firm by its commitment to the IA-64 architecture, its competitors especially Sun exploited this to present itself being the most sought vendor for UNIX-based systems among customers and independent software vendors such as Oracle and SAP. With this Sun was able to dislodge HP to some extent. Even when ESG was formed in 1997, customers and the industry consultants who advised them were concerned about HP's commitment to UNIX. HP’s OEM vendors were worried about their productivity as they were solely dependent on HP's proprietary RISC architecture, and would also have to bear the development costs of any new version of HP's proprietary UNIX operating system, owing to the commitment given by HP for the
Case Analysis – 1
Hewlett Packard’s Merced Decision
Siddhi Oka – W1282162
1. The following are the strategic assumptions that led to HP decision to work with Intel on the IA-64:
While allocating the required resources, senior management clearly assumed that IA-64 / Merced would eventually triumph. As it was meant to be faster than the currently existing RISC chips, IA-64 would succeed on the speed factor. ESG believed that as IA-64 was a bridge between RISC and CISC systems, it would be looked at as the first of its kind technology that could widely support enterprise applications built by Intel. However, the only problem was to contemplate when should this transition from RISC to IA-64 take …show more content…
In future, it would give economies-of-scale and give HP a competitive edge augmenting their in-depth knowledge about the technology besides giving them first-mover advantage. Over the years HP had developed deep knowledge, great acumen and skills in designing compilers and providing enterprise solutions. These joining forces with Intel to build a technology that was efficient, all-pervasive and user-friendly was only augmenting HP’s strengths further. With the limited resources at hand, and the competitors having made inroads into its domain, collaborating with Intel, having technological edge and a wide customer base, HP was right in assuming that this would be an opportunity to reclaim its position in the …show more content…
While HP stood firm by its commitment to the IA-64 architecture, its competitors especially Sun exploited this to present itself being the most sought vendor for UNIX-based systems among customers and independent software vendors such as Oracle and SAP. With this Sun was able to dislodge HP to some extent. Even when ESG was formed in 1997, customers and the industry consultants who advised them were concerned about HP's commitment to UNIX. HP’s OEM vendors were worried about their productivity as they were solely dependent on HP's proprietary RISC architecture, and would also have to bear the development costs of any new version of HP's proprietary UNIX operating system, owing to the commitment given by HP for the