Feeds

HP dangles $1 billion worth of services deals in front of analysts

Inking along

  • alert
  • submit to reddit

Boost IT visibility and business value

With analysts circling HP like a pack of famished dingoes, the company did the only thing it could to stave off a devouring - it announced $1 billion in new services contracts.

More than a fair bit of tension preceded HP's analyst conference held today in New York. A flood of stories, including our own, hit the wires yesterday, calling for HP to prove the Compaq side of the house is worth its weight in profits. With HP largely putting the mechanics of the Compaq acquisition behind it, pundits have turned once again to inspecting the bottom line.

To throw any overzealous mongrels off its scent, HP first thing this morning dished out the $1 billion in services wins. Novell, butter house Land O'Lakes and the U.S. Postal Service have all been added to a $600 million deal announced last week with the Bank of Ireland.

Information on all of the deals ran a bit thin, but HP did say the USPS has signed up for an eight year $50 million ride. It also inked - the most popular word at HP - a 15-year deal with the Romanian National Health Insurance House for $135 million and a $38 million deal with Mexico's Grupo Televisa.

Along with the wins, HP announced that it will continue to try and create tighter links between its services and enterprise systems businesses, as opposed to developing weaker links. The company may also consider buying small software companies to bolster its management portfolio.

Will this strategy help HP differentiate itself from Dell and IBM? CEO Carly Fiorina thinks so.

"I know it is popular these days to describe HP as stuck between IBM and Dell," Fiorina said, according to various media reports. "It is particularly popular for our competitors, IBM and Dell, to say we are stuck between the two. The facts don't support the thesis."

Hmm.

Dell makes hundreds of millions in profit off of PCs and servers, while HP usually sells these products at a loss. And IBM's software and services businesses outpace HP's. But that's just the popular view. ®

Related Stories

HP would be better off without Compaq drain - Analyst
HP preps online music store
The new HP is ready for its next test

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Dell The Man shrieks: 'We've got a Bitcoin order, we've got a Bitcoin order'
$50k of PowerEdge servers? That'll be 85 coins in digi-dosh
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.