New HP looks to Microsoft for licence boost

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New HP looks to Microsoft for licence boost

The new Hewlett-Packard will try to capitalise on the generous software licensing arrangements that Compaq traditionally had with Microsoft.

Michael Winkler, executive vice-president of worldwide operations at HP, said legal restrictions related to the merger had, so far, prevented HP from negotiating new terms with partners.

However, he hoped that the personal relationships between Compaq and Microsoft management should help secure competitive deals for HP on software licensing.

"Microsoft through [chief executive officer] Steve Ballmer and HP through Michael Capellas have a great relationship that I believe will carry over into the new company," Winkler said.

Capellas, the former chief executive officer of Compaq, is likely to stay on as HP president for some time, Winkler said.

"There is no question in my mind that Michael intends to stay for an extended period of time. I think you will see him stick with it to bring the promises of the merger to fruition."

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