Building on HP's Adaptive Enterprise strategy to tighten the linkage between business and IT, HP and Philips' semiconductor division have deployed an HP Utility Data Center (UDC) delivering a fully virtualized data center that reduces information technology costs and enables an IT infrastructure that responds in real time to market changes.

"The HP UDC allows us to quickly and easily adapt to the business fluctuations of the semiconductor industry," said Theo Smit, director, information and communications technology, Philips Semiconductors Nijmegen. "We reduce our total cost of ownership by streamlining data center management and reducing excess IT capacity while also incorporating the industry's best platform for data center consolidation."

HP's UDC is currently up and running at Philips Semiconductors' largest site in Nijmegen, the Netherlands. It is managed from a single console where server and storage resources can be allocated virtually instead of having to physically re-wire the desired hardware. Philips also leveraged previous IT investments by using existing servers in its new HP UDC solution.

"This new IT infrastructure at Philips semiconductor division in Nijmegen, including the virtualization capabilities of the HP UDC, reflects the real-world application and benefits of the HP Adaptive Enterprise strategy," said Nora Denzel, senior vice president, HP Adaptive Enterprise. " HP was able to offer solutions and technologies to help meet Philips' goals of building a more flexible IT infrastructure."

In addition to deploying the HP UDC, Philips is implementing operational processes to manage IT as a service, based on HP's IT Service Management methodology. The company is also deploying HP OpenView management software. Adding to the flexibility of the IT infrastructure, Philips and HP also are working on the implementation of a pay-per-use storage environment.

"As the HP Adaptive Enterprise strategy matures in the marketplace, sophisticated enterprises like Philips will take advantage of solutions such as the HP UDC that enable increased competitive value and cost benefits," said Vernon Turner, group vice president, global enterprise server solutions, IDC.