HP enjoys post-merger services contract boom

Hewlett-Packard has won more than $920m (£587m) in services contracts over the past few months, largely by helping to build,...

Hewlett-Packard has won more than $920m (£587m) in services contracts over the past few months, largely by helping to build, integrate, and manage the IT infrastructures of larger companies looking to cut costs and respond quicker to marketing opportunities.

Officials announced that HP has signed up Michelin in Latin America, the Ministry of Finance in Slovakia, the Swedish parliament, and the Washington Department of Revenue.

They claimed that one of the reasons for the company's success is that many of its larger customers feel more confident about the HP-Compaq merger because they can get a broader ranges of services and better exploit existing technical resources.

"A lot of users' investments now tend to be around trying to get more out of their existing assets. Sometimes this translates into an outsourcing deal for us, or a lightweight technology refresh. Many [Microsoft] .net projects, for instance, allow you to work with existing infrastructure where we can just put a layer of Web services on top if it," said Jürgen Rottler, vice-president and general manager of HP Services in North America.

Some industry observers agree that the combined company seems to be positioned more competitively for the future and that it appears to be taking advantage of HP's and Compaq's respective strengths in the services market.

"Following its integration of Compaq, HP Services has moved quickly to consolidate and solidify its overall strategy around adaptive infrastructures," said John Madden, senior analyst at Summit Strategies.

"The company's strengths in managed services, Microsoft technologies, and consulting and systems integration will allow the company to increase its momentum in the coming year."

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