The writing seems to be on the wall for Hewlett Packard Co's NetAction Java 2 Enterprise Edition (J2EE) application server, after the vendor confirmed it is changing its middleware strategy.

Palo Alto, California-based HP told financial analysts on Tuesday it planed to "retire" some of its middleware assets in an attempt to drive the software division towards profitability.

Peter Blackmore, executive vice president of HP's enterprise systems group, told analysts HP's middleware is "making the heavy losses". He said HP's strategy would be revealed by the end of June.

When asked by one analyst whether HP, which acquired Compaq Computer Corp recently, will sell its NetAction application server CEO Carly Fiorina refused to provide details. But Fiorina conceded HP is "engaged in some partner discussions" about its middleware strategy.

The decision to remove the NetAction application server from HP's portfolio, though, can be regarded as a done deal. ComputerWire reported in April BEA Systems Inc chief executive Alfred Chuang told Merrill Lynch Equity Research vice president Chris Shilakes HP had "scuttled Bluestone" and "gone WebLogic."

Chuang's comments confirmed what sources close to BEA had said - that the two Java vendors were in talks for HP to resell BEA.

Such a deal would re-activate an existing portion of the companies' relationship, when HP re-sold BEA's WebLogic, before HP bought Bluestone. Neither BEA or HP were able to comment at the time of going to press.

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