HP has decided to close down its public cloud computing services after five years of trying to to compete with Amazon.
The service, Helion Public Cloud, will close down at the end of January. The announcement was made by Bill Hilf, the cloud chief at HP, who said that the focus will now be on private cloud services rather than public cloud. HP is also planning to help customers to run HP software on other cloud systems such as those offered by Amazon and Microsoft.
The changes mean that HP will be able to focus on its strengths, which are selling hardware and offering managed IT services, and industry experts see this as a positive move. A number of other companies have also tried and failed to keep up with Amazon; for example, Dell gave up this aspect of its business in 2013.
HP has a $28bn (£18.29bn) business in hardware and this section of the company has suffered in recent years. Mr Hilf said that there are opportunities for the company in the private cloud technology sector and that the move should not be seen as a step away from cloud computing.
The company started its Helion sector five years ago but was unable to compete efficiently right from the start. Industry experts believe the company underestimated the power and products of its rivals. HP also suffered some technical problems, which left it lagging behind rivals, and sales staff were not geared up to promote the public cloud services.