Pipeline Q&A: HP (cont'd)

Pipeline: We’ve talked about functionality and philosophy, but what more can you tell me about how HP’s OSS offering is really unique?

DeLaughter: We have products that cover the OSS space like mediation, activation and assurance, but I think what’s unique is that we’ve extended it as well to manage performance of network and service infrastructure, to manage the systems on which services depend and provide real service management. This takes us deep into carriers operations where we deal with problems most OSS vendors never see. For example, using a process-oriented approach with ISM, one customer identified within three days that its credit check process was failing almost 25 percent of the time, and this in turn caused the activation process to take nine times longer than it needed to. We were able to solve this problem where I think typical OSS vendors are not thinking about the infrastructure at the business process and service level.

The other unique aspect of HP's offering is that we are a systems integrator and a full featured product vendor, which I don't think anyone else can claim (Editor's Note: While many large OSS vendors have strong professional services groups, none can really claim to be a product vendor and SI at the scale HP is suggesting.) We are focused on reducing the integration tax. We're bringing a product portfolio with us, so it's our job to take care of that integration and remove that tax completely wherever we can.

Pipeline: What steps has HP taken to keep TeMIP current, given the product line has now been around for a number of years?

DeLaughter: I think, at a competitive level, what our customer care about is reliability, scalability and the ability to handle massive architectures. That’s what TeMIP offers and we’ve had a record number of new contracts signed this year. We continue to invest heavily in that product – such as in an OSS/J interface and more integration with key partners. Actually, it’s no older than products like NetExpert (developed by OSI, acquired by Agilent) for example, but seems to have a better record. The investments we’ve made in TeMIP keep it very competitive in the market. We are competing and winning today and that shows we are meeting customers needs.

OpenView has always been designed cleanly and intended for expansion. People not familiar with OpenView might not realize that we've integrated it with network node manager and evolved into a very scalable management platform for IP. We added capabilities to it for things like more predictive analysis, and newly integrated technology has helped us leapfrog ahead of Smarts (an HP competitor recognized for leadership in enterprise infrastructure management and predictive analysis solutions for application services).

Pipeline: This issue is about consolidation in the OSS sector. Where does HP see the sector going, and what can you tell us about HP’s potential role as a consolidator?

DeLaughter: Companies that might have had leading point products in the 90s are looking to consolidate with larger companies, so that will continue to happen. It’s a matter of business reality for many companies. Service providers want fewer vendors to work with who are more full service, with product, product integration and maintenance. At our user group last week it was clear that when an OSS investment is made, service providers are looking at a five year horizon. You have those OSS companies that failed in the market (leaving carriers stranded with unsupported applications). That left a bad taste in the mouth of large service providers where their critical issue is time-to-revenue. Now they want companies that assure them the safest path to revenue, and when they look at companies to place their bets on, HP gives them the level of assurance they need.

In terms of HP as a consolidator – The network service provider vertical is a strategic area for us, so we always keep our eyes on opportunities and how we will proceed in the market, but there's nothing specific we can comment on now.

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