H-P & Datatec Partner For Deployment, Design, & Maintenance Opportunities Worldwide - Company Business and Marketing

EDP Weekly's IT Monitor, March 13, 2000

Hewlett-Packard (NYSE: HWP) and Datatec Systems Inc. (Nasdaq: DATC), and its subsidiary, eDeploy.com, have entered into an agreement to partner on network projects throughout North America. The total value of the relationship is estimated at $120 million over the next five years.

"We look forward to expanding our mutual business opportunities by leveraging our respective strengths. With HP's existing global presence in the Network Service and Support arena, we will be able to expand Datatec's own offering to include worldwide deployment and support," says Mike Jolly, Business Unit Manager of Network Services Operation, Americas for Hewlett-Packard.

This relationship initially developed through the two companies' participation in the Cisco Professional Services Partner Program.

"This relationship between HP and Datatec is a perfect example of Cisco's vision of an ecosystem of partners combining best practices to facilitate the absorption of network devices in the marketplace," says Scott Ferguson, Director of Channel Programs at Cisco Systems Inc.

The agreement states that Hewlett-Packard will designate Datatec as a preferred provider of deployment services to its Network Services Group. Datatec will support the growing network services area for Hewlett-Packard with its rapid deployment model, accelerating network deployments throughout the United States and Canada. Datatec will utilize eDepoly web-based solution tools to manage and communicate project specifics to HP and their clients.

HP has awarded Datatec its first project valued in excess of $1 million, for the deployment of network devices at over 6,000 sites nationwide to be delivered within the next six months. Hewlett-Packard expects to contract Datatec for over $60 million in deployment services over the next five years.

The agreement further states that Datatec will make Hewlett-Packard design, support and network maintenance services available to its direct clients throughout the US and Canada. Datatec believes that their Fortune 1000 clients could represent up to $60 million in support and network maintenance services over the next five years.