Microsoft and HP confirm US$300m enterprise push

Industry heavyweights Microsoft and HP will invest US$300m over the next three years to expand their strategic alliance and develop comprehensive offerings for enterprise customers around the world. The two companies will splash the cash on collaborative efforts in solution development, testing, validation, deployment, and joint sales and marketing.

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By  Stuart Wilson Published  December 14, 2006

Industry heavyweights Microsoft and HP will invest US$300m over the next three years to expand their strategic alliance and develop comprehensive offerings for enterprise customers around the world. The two companies will splash the cash on collaborative efforts in solution development, testing, validation, deployment, and joint sales and marketing. HP claims that the deal makes it the first premier global partner to deliver comprehensive solutions for Microsoft’s people ready business (PRB) vision. Microsoft’s PRB vision centres on the concept that people, armed with the right software, are the key to driving business success. “With the recent announcement of the largest product launch to business customers in our company's history with Windows Vista and the 2007 Microsoft Office system, we are bringing to market more than 30 new products and services in the next year that will further enable people ready businesses,” said Kevin Turner, chief operating officer at Microsoft. “Through our collaboration with HP, our more than 20,000 joint customers will have access to an expanded set of solutions and services to tackle their most pressing business problems,” he added. Ann Livermore, executive VP of the Technology Solutions Group (TSG) at HP, explained: “Extending our strategic alliance with Microsoft further strengthens HP’s enterprise strategy, which is focused on empowering CIOs to align IT with business by delivering more cost-effective, scalable, secure ways of enhancing employee productivity. HP itself is a great example of the power of solutions for the people ready business, as we are using many of the technologies in the portfolio to empower our people to conduct business at any time, from anywhere.” The new HP and Microsoft solutions will focus on five key areas for enterprise customers worldwide: messaging and unified communications; collaboration and content management; business intelligence; business process integration; and core infrastructure. The two vendors claims that these solutions will enable enterprise customers to realise greater value for their existing IT assets, capitalise on next generation technologies and achieve a more agile and adaptive enterprise. John Gantz, chief research officer at IDC, commented: “This agreement means that the two companies and their combined ecosystems have an opportunity to bring complete solutions to their customers in these critical areas,” he said. “Just the software markets alone in business intelligence, collaboration, content management and infrastructure software running on Windows will be a US$49 billion market in 2007. Add in communications, hardware, and services, it is easily over US$100 billion.” The agreement will pitch the combined efforts of HP and Microsoft squarely against IBM and its ‘On Demand’ business offering for enterprise customers. HP and Microsoft share more than 20,000 joint customers worldwide. Under the terms of the agreement, HP has also committed to training 3,000 additional consultants on Microsoft solutions.

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