January 24, 2011 – Less than four years after it was unveiled, HP has decided to stop selling its one-stop Neoview data warehouse product because of varying customer needs, according to a company statement.

HP will continue to support the product for existing customers for the time being. The company’s data warehousing efforts going forward will focus on partnerships and new developments rather than Neoview’s hardware, software and services, according to a statement from HP public relations officer Erin McCabe.

“Our customers are demanding options for addressing an emerging set of requirements around the explosive growth of data, new types of information, new classes of analytics and new delivery models,” says McCabe.

HP acted on that last week, in an announcement of new data warehouse appliances for enterprise and SMBs designed in a year-old, $250 million joint venture with Microsoft.

Neoview was introduced as a high-end, one-size-fits-all data warehousing product and business intelligence service by then-CEO Mark Hurd in April 2007.

Mark A. Smith, analyst with Ventana Research, says the move to transition away from Neoview was not surprising because of HP’s inability to market proper application of the product and deal with customer dissatisfaction over its scalability and security limitations. Smith says the current HP CEO Leo Apotheker must do a better job than his predecessor Hurd of expressing the business side of data appliances and enterprise software.

“HP now has to determine if a partner only strategy with Microsoft, SAP and Teradata and others will help it compete against IBM and Oracle more specifically,” says Smith. “Currently it does not look that it will and eventually, HP and … Apotheker will need to take a more strategic step in acquisitions to play in the market for analytics and data appliances.”

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