HP, one of the world’s largest technology companies, announced Tuesday that it would be cutting 9,000 jobs as it readies to launch a new era of enterprise services – one that has focus on cloud computing. 

HP, one of the world’s largest technology companies, announced Tuesday that it would be cutting 9,000 jobs as it readies to launch a new era of enterprise services – one that has focus on cloud computing. 

Company officials said the transformation will be built on HP’s market-leading technology and software and will require an investment of $1 billion. HP will invest in fully automated, standardized, state-of-the-art commercial data centers built on its Converged Infrastructure and operated by its management software, said officials.

Cloud computing has become a new buzzword in the technology world – and in healthcare, as providers are looking at it as a viable solution to their medical data storage dilemmas.

"Cloud computing techniques are going to play a big role and health information exchanges are going to get bigger and better," says Bill Burns, senior director for Hitachi Data Systems. "Local hospitals may opt to create their own private cloud for the storage of sensitive data," he says.

HP officials said its new initiative is designed to enhance the client experience and better position Enterprise Services for growth. HP will consolidate Enterprise Services’s commercial data centers, management platforms, networks, tools and applications to create a more scalable, modernized and automated IT infrastructure that will better serve its clients’ needs.

“Over the past 20 months, we focused on integrating EDS and improving profitability,” said Tom Iannotti, senior vice president and general manager, HP Enterprise Services. “Now that the integration is largely complete, we have identified significant opportunities to grow and scale the business. These next-generation services will enable our clients to benefit from the combined technology and services leadership that only HP offers.”

Once completed, this transformation is expected to generate annualized gross savings of approximately $1 billion and net savings after reinvestment in a range between $500 million and $700 million.