HP, Genuity To Tackle E-Services Market Together



Hewlett-Packard (stock: HWP)and Genuity Inc. (stock: GENU) have formed an alliance that will help HP further entrench itself in the market for providing E-services while giving Genuity a faster hardware platform and access to HP's global reach. HP will essentially become a sales channel for Genuity's managed E-business hosting services as well as the company's primary hardware vendor. HP also will be able to offer Genuity's array of services--including virtual private networks, security, and voice over IP--to its own customers.

Genuity's chief strategy officer, Jim Freeze, says the company has seen its demand shift during the past two years from Unix-based services to hosted environments supporting Microsoft platforms, and Genuity is moving to a Microsoft 2000 platform itself. Freeze says the primary benefits of the alliance for Genuity will be faster time to market and the leveraging of HP's vast distribution network: "They're going to help us advance our business in a big way."

HP, meanwhile, was interested in partnering with a company that has an established foothold in the E-services market so it could efficiently provide managed hosting services to its customer base, says HP's Dave Scantling. The two companies plan to begin offering products and services for developing business-to-business and business-to-consumer extranets and intranets on a Windows 2000 platform later this year.

Forrester Research analyst Jeanne Schaaf says that while Genuity is likely to benefit from the new business HP will bring it, HP isn't exactly the first hardware vendor to test the managed hosting services waters. "In this market, there's a lot of back and forth between hardware vendors and managed hosting firms," Schaaf says. "Hardware vendors have been hot to get into that market."

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