HP wins $920 million in services contracts

Hewlett-Packard on Tuesday announced it has won a little more than US$920 million in services contracts over the past few months fueled largely by helping build, integrate, and manage the IT infrastructures of larger companies looking to cut down on their costs and to respond quicker to marketing opportunities.

The latest wins have a decidedly international flavor as company officials announced that it has signed up Michelin in Latin America, the Ministry of Finance in Slovakia, the Swedish Parliament, and the Washington Department of Revenue, a company spokesman saidOne of the reasons for the company's success, company officials claim, is that many of its larger customers are feeling more confident about the HP-Compaq merger in that they can get a broader ranges of services as well as are able to better exploit existing technical resources, company officials said.

"A lot of users' investments now tend to be around trying to get more out of their existing assets. Sometimes this translates into an outsourcing deal for us, or a lightweight technology refresh. Many [Microsoft] .Net projects, for instance, allow you to work with existing infrastructure where we can just put a layer of Web services on top if it. We see a lot of activity there," said Juergen Rottler, vice president and general manager of HP Services in North America based in Cupertino, Calif.

Some industry observers agree that the combined company seems to be positioned more competitively for the future and that it appears to be taking advantage of HP's and Compaq's respective strengths in the services market.

"Following its integration of Compaq, HP Services has moved quickly to consolidate and solidify its overall strategy around adaptive infrastructures," said John Madden, senior analyst at Summit Strategies Inc. "The company's strengths in managed services, Microsoft technologies, and consulting and systems integration will allow the company to increase its momentum in the coming year."

In its four-year deal with the Swedish Parliament, HP will provide a secure IT and communications infrastructure capable of equipping the 360 members with mobile and standardized access to parliament's IT network and databases from anywhere inside the country. The solution is centered on HP's Mobile Open roaming, which contains broadband communications, mobile phones, laptops with smart card access to a range of servers, and peripherals.

In the deal with the Washington Department of Revenue, HP's Services Enterprise Microsoft Practice will help with the creation of a number of database technologies, which will form the basis for the agency's initiative to improve its tax collection and enforcement efforts. This solution is being developed with industry-standard HP ProLiant servers and Microsoft Corp.'s SQL Server database.

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