Hewlett-Packard Co, in an effort to prise itself into the web application server space, has split its Unix server division into two. It has formed a high performance systems division – to concentrate on things like Online Transaction Processing (OLTP) – and an internet applications systems division (IASD), which will be the focus of its work as it leverages its applications effort with companies such as SAP AG to move that to the web, where it admits Sun Microsystems Inc has been eating its lunch. Within nine to 12 months it plans to release an 8-way machine based on the PA-RISC 8500 processor and following that the company will begin to offer software and services on top, which the new division’s general manager Nigel Ball calls quality of service for the web. It will carry its Domain Internet Solutions hardware branding. These are things like load balancing, compression, encryption and high availability and manageability features specifically aimed at markets such as internet service providers (ISPs), supply chain management, companies setting up electronic store fronts – HP owns electronic payments company VeriFone Inc – and what it calls maintenance and repair operations. Regarding ISPs in particular, HP thinks they will pay more for different levels of service so they can offer their users the same graded levels at different costs. Ball and the other executives from the new division recently took a peek around the company’s laboratories and apparently found some interesting stuff going on, such as video streaming work – which will be used during World Cup ’98 in France (HP is a technology provider) in the press facilities, and compression and encryption, which it sees building directly into the I/O subsystem, which it thinks will be very attractive to ISPs. HP is also getting into the growing internet telephony market and expects to productize some hardware within a year to sell to ISPs, which it reckons will be really into internet telephony by 2000. HP has also recently established two other units – the electronic business software organization, encompassing the OpenMail, VirtualVault, Praesidium security and change engine work. Ball said it is the first dedicated software sales force HP has ever had. It is headed by Radha Basu and is part of the software and service group. The extended enterprise business unit will look for opportunities to extend electronic business, and was the one behind the VeriFone acquisition. It is headed by Glenn Osaka, who reports to executive VP Rick Belluzo. Ball reports to the general manager of HP’s technical computing business unit, Bill Russell.