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ITU Telecom World 2003

October 14, 2003
Alcatel, HP to jointly develop solutions for SMBs

GENEVA -- Alcatel and HP will jointly develop and market a suite of advanced, integrated IT and communication solutions specifically designed for small and medium businesses (SMBs). As part of the agreement, HP and Alcatel are launching a new Ready Office program for SMBs, and partnering with leading telecom service providers worldwide to provide SMB customers with modular, turn-key solutions to address productivity needs from PCs and servers to software, network access, voice, data and multimedia services.

Available in a "pay-per-use" model, the comprehensive solutions package will meet and grow with the service needs of the SMB customers. Through the Ready Office program, Alcatel and HP are enabling service providers to offer a single point of contact for service and support to SMBs. The program will allow opeartors to easily integrate voice, data and Internet access with reliable technologies that work better together and are easy to own.

France Telecom will be the first telecom service provider to join the Alcatel and HP initiative. This is the first example of how service providers can effectively address the huge SMB market for services. France Telecom will take advantage of its leadership in Internet/intranet networking and communication services, and of direct and indirect distribution channels. SMBs in France will have a single point of contact for the entire solution based on Alcatel-HP and France Telecom's products and services.

Tchuruk, chairman and CEO, Alcatel, said: "This agreement with HP leverages Alcatel's global knowledge of service providers and draws upon our leadership positions in broadband access and in selling enterprise communications services to a global base of customers. Now we can deliver the industry's broadest suite of advanced business services to the SMB market. By selecting the Alcatel and HP offering, telecom service providers will broaden their SMB customer base, and improve customer loyalty."

Carly Fiorina, chairman and CEO, HP, added: "HP is the worldwide leader in the SMB customer segment, generating an annual revenue of over US $21 billion. We are pleased to work with Alcatel to create integrated solutions designed to remove the complexity faced by SMBs worldwide when trying to purchase and set up their computing and telecom environments. This joint offering will enable SMBs to get more out of their IT and telecom while enabling them to spend more time focused on running their businesses," .

According to Camille Mendler, research director, The Yankee Group, "The key challenge is to provide simplicity and convenience. Alcatel and HP have designed off-the-shelf service and equipment bundles to appeal to the SMB, a customer who wants to buy business solutions, rather than technology. This important partnership illustrates the changing role of equipment vendors in the telecom supply chain. Telecom service providers are looking beyond technology solutions to commercial services that equipment vendors can also supply."

In addition, both companies will leverage their extensive network of indirect distribution channels so that service providers, including their own integrated channel, can benefit from a powerful go-to-market capability offered by the certified channel partners. Finally, Alcatel and HP will provide professional services to support operators throughout the various phases of the delivery of these new services, from business planning to commercial deployment.

Contact:
HP

www.hp.com







Carly Fiorina
Chairman and CEO, HP.
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