HP Gives BEA $100m for Joint TP Development

Computergram International, April 8, 1999

Hewlett-Packard Co and BEA Systems Inc yesterday said they plan to develop new transaction processing software as well as integrate a raft of HP software with BEA's WebLogic application server, OLTP and e-commerce software. In giving the nod to WebLogic as its choice of application server, HP stopped far short of an outright acquisition of the recently-troubled middleware company, a piece of Wall Street tittle tattle which has been doing the round for several weeks now. HP has agreed to put BEA products through all of its distribution channels and is committing $100m for integration and joint development. How the BEA deal will affect HP's relationship with Iona Technologies Ltd, another somewhat troubled middleware player which HP did a deal with last year, isn't clear, although BEA and Iona are both working towards the holy grail of heterogeneous, component-based transaction services. HP's internet software business general manager Joe Beyers said HP would integrate its OpenView, Praesidium, MC/Service Guard, WebQoS, and ChangeEngine management and security software with WebLogic application server, Tuxedo transaction server and eLink enterprise application integration server.

BEA has already developed eLink middleware to enable companies to web-enable legacy and enterprise resource planning applications such as SAP, but Beyers said the companies will develop additional solutions to connect to other environments including Siebel, Clarify and Oracle. They will also target specific industry sectors, such as the telecommunications market, and develop middleware to enable those companies to move their proprietary back-end applications to web store fronts. "These are potentially multimillion dollar deals for us," Nigel Ball, general manager of HP's e-services division told ComputerWire, "we'll bundle the eLink software with HP hardware, our OpenView management solution, or other software, and package that with services on top."

In addition, the two will work to expand BEA's forthcoming component-based e-commerce software, which consists of two product lines. The first, to be rolled out in the next 60 days, is a set of low level components that enable developers to set rules, routing and data distribution policies. The second are a series of business level components that enable companies to rapidly develop store front applications such as billing, shopping carts and on-line auctions. BEA said it will release a roadmap for the business components within the next 90 days. As part of the announcement, BEA said it is investing $50m, and dedicating around 200 employees in a new business unit called BEA eSolutions, which will steer its e-commerce development work and strategy.

HP's $100m development funding comes at a time when the company is desperately trying to reinvent itself by focusing on e- commerce. HP has set up a new internet business unit charged with creating internet software, appliances and e-services. The BEA deal is designed to enhance HP's e-services initiative although both companies stressed the deal wasn't exclusive. BEA added its partnership with HP would be the first of many alliances to deliver its e-commerce products into strategic markets.