Microsoft and HP Form $300M Partnership

Microsoft and Hewlett-Packard (HP) announced last Wednesday that the two companies will be joining in a $300 million, three year partnership. The aim of the "People-Ready Business" duo is to attract more large business customers. (Source: reuters.com)

With HP making the most personal computers and Microsoft holding the title of the world's largest software maker, the partnership offers mutual potential to each party. In a statement released last Wednesday, Microsoft called HP "the most comprehensive partner we have," a great accomplishment since the software giant has over 640,000 partners. (Source: betanews.com)

Although neither company has revealed details about the alliance, they plan to collaborate on developing and marketing new products and working together on sales efforts. They also hope to extend the partnership into new areas that would help large businesses incorporate new technology into their operations. (Source: reuters.com)

Ann Livemore, Executive Vice President of HP's Technology Solutions Group, noted her satisfaction with the deal. "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," she said. (Source: redherring.com)

Microsoft CIO Kevin Martin also expressed his view of the partnership. He explained that with over 20,000 mutual customers between the two powerhouses, the alliance is a natural fit. "We think there's 20,000 more out there that we could extend this opportunity into," he added. (Source: betanews.com)

When asked which company will be representing customers and which company will approach customers with solutions, HP's Ann Livemore explained that the answer will vary with different situations. She said that between Microsoft's partners, HP's partners and the company's two sales forces, the alliance creates a variety of angles that can be taken to generate solutions. (Source: betanews.com)

The partnership is seen by many as an attempt to combat IBM. But how successful will this alliance be? I guess we'll know after three years and $300 million.