HP subs server memory gig to Solectron

Big Deal

HP is consolidating its branded server memory modules budget into the open arms of Solectron.

The lossmaking contract electronics manufacturer will assemble the modules for HP from its plant in Puerto Rico, where labour costs are cheap. It describes the deal as a "valuable business win", worth $1.4bn over five years. Solectron will also make printed circuit boards and "other products" for HP mid and high-end enterprise servers under the deal.

But who did it win against? Neither party is saying: but round up the usual suspects on the memory score - Kingston, Micron, Infineon, Samsung, spring to mind. For the all-in-one package, don't look much further than Solectron's big rival, Sanmina-SCI.

So why is HP subbing memory module manufacture, instead of buying in from, Kingston, say? Well, there is plenty of margin in branded server memory - still. And HP, from now on in, really can say its server memory is different. ®