HP Exploring Acquisition Targets In Microsoft's Solution Provider Channel

Microsoft Hewlett-Packard

One HP executive who was key to crafting the deal that was announced Monday said the OEM and systems integration giant is actively seeking acquisitions in the Microsoft solution provider channel to help jump-start the massive .Net services deal.

While HP is not the exclusive services partner for .Net, it is currently the only "preferred" systems integrator partner of record, said Rick Fricchione, vice president of enterprise Microsoft services at HP.

As part of HP's announced plans to grow its workforce by 2,000 to fuel the .Net services business, HP is "looking at acquisitions right now" in Microsoft's solution provider channel, Fricchione said. "They're related to Microsoft in horizontal and vertical industries."

Fricchione noted that the deals in play will be similar in size and scope to Dell's acquisition of Plural and Compaq Global Services' acquisition last year of Minneapolis-based Rainier Technologies, a small, Microsoft-focused partner and technology services specialist.

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HP is becoming armed to do battle against IBM and Sun in the Web services war.

"We don't believe in doing huge choking acquisitions right now," Fricchione said. "The strategy is to create a string of pearls, small Ranier-sized companies that are more easily integrated so you don't have a PricewaterhouseCoopers integration issue into IBM."

The executive said HP is focused on the enterprise space and Microsoft's top global accounts, but it could play a role in the SMB space as well.

"We sell services into SMB primarily for support, installation and startup small services engagements," said the HP executive. "We will be working to take some of our [.Net solutions through the channel, but it's not a primary focus of our agreement."

Fricchione also said consolidation in Microsoft's channel will likely continue as Microsoft pushes out more onto the enterprise landscape. "Microsoft is finding local integrators less viable" for major .Net deployments, the HP executive said.