WSJ: H-P replacing Verizon as Obamacare site hosting provider

|By:, SA News Editor

The WSJ reports the Department of Health and Human Services plans to have H-P (HPQ +9%) replace Verizon's (VZ -0.2%) Terremark unit as the Web hosting services provider for the much-criticized Obamacare health-insurance marketplace site (

The department reportedly awarded H-P a contract over the summer, before the site went live and ignited a firestorm of criticism due to performance, reliability, and security concerns.

While the dollar value of the deal is unlikely to significantly move the needle for either H-P or Verizon, the department's switch could have PR implications. Both H-P and Terremark are trying to gain ground in a hotly competitive cloud infrastructure market currently dominated by Amazon.

The report comes on a day in which H-P nearly made new 52-week highs on account of its big FQ4 revenue beat.