The latest move by Hewlett-Packard Co’s to convince the world that it really is an internet company came yesterday with a three and a half year, $35m strategic alliance with BroadVision Inc to build business portals applications and services. The two have already been working together for some time. HP uses Broadvision’s technology on its shopping village site and BroadVision is an HP ISV.
The alliance involves joint development, incorporating BroadVision’s One-To-One family of portal applications with HP’s Web QoS technology and other, unspecified tools. In addition, HP will immediately begin reselling and supporting BroadVision’s product line through its worldwide network of sales people in 120 countries – contrasted with BroadVision’s current exposure in just 22 countries. The first jointly-developed products are expected in early 2000.
HP will guarantee BroadVision $35m in software license purchases and services over the period, although HP emphasizes that no equity purchase is involved. HP will contribute additional resources not included in that figure, according to Nigel Ball, HP’s general manager of its e-services group within the internet and applications systems division. These include marketing, pre- sales technical support and consultancy.
Ball wouldn’t comment on the breakdown of the money, but Credit Suisse First Boston says it is split two-thirds to one-third in favor of software over services and is back-end loaded; CSFB reckons it is worth $6.5m to BroadVision in 1999, with $2m being recognized in the first quarter just ended.
BroadVision’s products include One-To-One commerce, enterprise, financials and services that link back-end databases and legacy systems with call centers, systems managers, website designers and business managers. Ball says the cross-platform nature of the product line will be maintained with the jointly developed products; they will run on HP-UX, Windows NT and Solaris.
Ball dismissed suggestions that these types of initiatives at the company are a reaction to similar initiatives at IBM Corp and Sun Microsystems Inc. He says this is much deeper than their offerings and cites the company’s recent deal with BEA Systems Inc, as well as its ability to offer payment technology from its VeriFone subsidiary, as examples of its broader approach.
