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Article

Title: H-P Charges Hard into Software

Author: Lawton, Christopher Article Type: Company
Source: Wall Street Journal, v249 n41 pB3(1) Publication Date: Feb 20, 2007
  ISSN: 0193-2241
  Illustrations: Charts, Tables
URL of Publication: http://www.wsj.com

Hewlett-Packard Company (HP) has decided to enter the software business. While already being a strong brand in personal computers and printers, HP will offer a new group of HP programs that emphasizes the importance of business software to the company's strategy. The software package will combine OpenView, a popular program with a loyal following, with programs developed by Mercury Interactive Corp., which was acquired by HP for $4.5 billion in 2006. The OpenView and Mercury brands are being replaced by the umbrella name of HP Software. HP must first change its imperfect track record in the software arena and correct the perception that business software is less profitable than it has been in the past. Julius Tomei, senior director and chief information officer at Advance Transformer, a lighting components manufacturer owned by Philips Electronics NV, believes there are benefits to HP's move. His firm uses both OpenView to help companies manage and monitor their computer equipment, and programs from Mercury that help firms to develop and test their software. Tomei says he welcomes the fact that HP is committed to making these products work better together. HP faces risks in terms of alienating long-time customers, however, if efforts to integrate the two product lines fail, or if its sales staff is not trained to market both of the products effectively.

Special Features: Charts, Tables

Companies:
Hewlett-Packard Co Mercury Interactive Corp

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