HP explains e-services strategy

Hewlett Packard is taking a "bold step" by adopting a completely Internet-focused strategy across all its business units, a company executive has admitted.

Keith Melbourne, worldwide group marketing manager for HP's Internet business unit described the company's month-old e-services strategy as a "managed risk", but was confident it would lead to dramatic revenue growth.

"Business is all about managing risk," Melbourne said.

Speaking in detail about the HP's plans to build its e-services, Melbourne said the company would execute its e-services strategy through three main channels: the application services market, enterprise portals and brokering.

According to Melbourne, HP's e-services strategy hinges on the second generation Internet, where everything is delivered on the Internet.

HP will work with partners in each space to deliver services to customers to build new business models centred around the Internet, Melbourne said.

According to Melbourne, HP has already cemented a number of partnerships with service providers and brokering and portal companies, including Quest, PSINet, US Internetworking and Security First.

According to local officials, local partnerships are still to be finalised and announcements are expected in August.

Melbourne said it is not HP's intention to compete with service providers but will work with them to deliver services to customers.

"Not all [services] will be deployed by HP. We will focus on the core competencies on HP and the intellectual property," Melbourne said.

"We don't want to compete with service providers."

According to Melbourne, HP plans to extend its e-services in the future to other areas such as application consulting and capacity planning.

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