HP exits e-business software market
CNET News.com
July 15, 2002, 10:55 AM PT
Hewlett-Packard on Monday discontinued its family of e-business software after failing to make inroads into the multibillion-dollar market.
After a two-year effort, HP killed off its line of NetAction products, which included its application-server software, designed for Web transactions; and related software for building Web services, an emerging trend that allows companies to interact and conduct business via the Internet.
HP executives had previously hinted that the company would exit the e-business software market after suffering heavy losses. The company will now partner with Microsoft and BEA Systems to provide these applications.
HP will refocus its software efforts on three technologies that manage software: HP OpenView, used to manage and monitor the health of businesses' computer systems; HP Utility Data Center, to simplify management of data centers, a facility that houses servers which hold Web sites' databases, files and other content; and HP OpenCall, software that allows telecommunications service providers to offer telephony and Internet services to customers.
"The OpenView franchise is a license to print money. NetAction was a license to burn it. (HP CEO) Carly (Fiorina) made a tough decision, and probably the right one," said Illuminata analyst James Governor.
HP had made a big push into the e-business software market to compete better against its two principal rivals, IBM and Sun Microsystems, high-end computer makers that have more extensive software portfolios.
HP acquired application server technology in October 2000, when it spent $470 million to acquire Bluestone Software, a small company that competed against IBM, Sun, Oracle and others. Last year, Fiorina said boosting software revenue growth was a high priority. But by last November, HP announced it was giving away its own core application server for free, while charging customers for advanced features and add-on technology. HP owns only 4 percent of the application server market, far behind market share leaders BEA and IBM, according to Giga Information Group.
HP was also an early Web services pioneer with its E-speak software. HP pitched the idea for companies to offer online services to others who want to take advantage of them, and E-speak is software that glued such services together. HP had the idea and engineering expertise, but it failed to attract many developers. The notion of Web services didn't take off until Microsoft, IBM, Sun and others latched onto the idea and started to market it with products.
"HP did a lot of great research and development, but it failed to transfer the technology from the lab to the field," Governor said. "Bluestone was a last throw of the dice to drive a (software) 'middleware' and integration story."
CNET News.com
July 15, 2002, 10:55 AM PT
Hewlett-Packard on Monday discontinued its family of e-business software after failing to make inroads into the multibillion-dollar market.
After a two-year effort, HP killed off its line of NetAction products, which included its application-server software, designed for Web transactions; and related software for building Web services, an emerging trend that allows companies to interact and conduct business via the Internet.
HP executives had previously hinted that the company would exit the e-business software market after suffering heavy losses. The company will now partner with Microsoft and BEA Systems to provide these applications.
HP will refocus its software efforts on three technologies that manage software: HP OpenView, used to manage and monitor the health of businesses' computer systems; HP Utility Data Center, to simplify management of data centers, a facility that houses servers which hold Web sites' databases, files and other content; and HP OpenCall, software that allows telecommunications service providers to offer telephony and Internet services to customers.
"The OpenView franchise is a license to print money. NetAction was a license to burn it. (HP CEO) Carly (Fiorina) made a tough decision, and probably the right one," said Illuminata analyst James Governor.
HP had made a big push into the e-business software market to compete better against its two principal rivals, IBM and Sun Microsystems, high-end computer makers that have more extensive software portfolios.
HP acquired application server technology in October 2000, when it spent $470 million to acquire Bluestone Software, a small company that competed against IBM, Sun, Oracle and others. Last year, Fiorina said boosting software revenue growth was a high priority. But by last November, HP announced it was giving away its own core application server for free, while charging customers for advanced features and add-on technology. HP owns only 4 percent of the application server market, far behind market share leaders BEA and IBM, according to Giga Information Group.
HP was also an early Web services pioneer with its E-speak software. HP pitched the idea for companies to offer online services to others who want to take advantage of them, and E-speak is software that glued such services together. HP had the idea and engineering expertise, but it failed to attract many developers. The notion of Web services didn't take off until Microsoft, IBM, Sun and others latched onto the idea and started to market it with products.
"HP did a lot of great research and development, but it failed to transfer the technology from the lab to the field," Governor said. "Bluestone was a last throw of the dice to drive a (software) 'middleware' and integration story."
