HP Services Wins Big Contract, Announces Services Acquisition

As part of the seven-year contract, in which CIBC names HP its preferred provider of IT services, HP Services will manage CIBC's IT infrastructure, which includes everything from desktop PCs to mission-critical systems and software from a number of different vendors, including MVS and NonStop Himalaya systems; Unix%C6, Windows NT%C6 and IBM AS/400 midrange servers; and networking gear. HP will provide related technology procurement, asset management and IT vendor management and application support services.

The interesting thing about the deal, say company watchers, is that HP Services will take control of a variety of non-HP products, marking a conscious move by the company to become a multi-technology services outfit.

The companies also announced that HP will acquire all of CIBC's interest in INTRIA-HP, which was formed in 1988 to provide outsourcing services to Fortune 500 customers in North America. HP executives say the deal, which should close by Nov. 1, will bring a new level of capability to the company's growing services arm, including multi-technology skills and expertise in IT outsourcing for the financial services industry.

"The acquisition of i-HP dramatically expands our outsourcing services capabilities here in North America, and it certainly strengthens our multi-technology capabilities and our expertise in the financial services industry," said Ann Livermore, executive vice president of HP Services, during an a conference call early Tuesday to announce the deal.

The deal is HP's most recent move in a fierce battle it has been waging with IBM for leadership in the IT services arena, and it comes on the heels of IBM's decision to buy PwC Consulting and add its roster of clients and consultants to IGS' ranks.

As part of the INTRIA-HP acquisition, HP Services will add about 1280 IT professionals to its roster, as well as a number of other assets, including two fully redundant data center sites in Canada. "This move is a natural evolution for both of our companies, and it certainly gives HP a great opportunity because we are acquiring some top-notch IT services skills and resources," said Livermore.