HP Invests in Novadigm

HP is partnering with software management provider Novadigm in an alliance that involves both an HP investment in Novadigm and the integration of Novadigm's products with HP OpenView. HP's equity stake in Novadigm is in the 4 to 5 percent range, according to Novadigm Chairman and CEO, Albion Fitzgerald.

The two companies will collaborate in three main areas: product integration, migration of OpenView Desktop Administrator (DTA) to Novadigm's Radia, and joint marketing and sales efforts. The product integration, combining Novadigm solutions and HP OpenView Venture solutions, will extend OpenView's reach to cover deployment, ongoing management, and ultimately the replacement of software, according to Fitzgerald. The companies expect the integration to be completed by the end of 2000.

The migration of OpenView DTA to Radia is designed to meet the needs of Windows 2000 and mobile users as well as other client needs, Fitzgerald says. The project will involve the introduction of several migration tools and utilities, and will be completed in stages over an 18-month period.

On the joint marketing and sales front, Novadigm will gain access to HP's direct and indirect distribution channels, allowing it to "extend its channel reach and increase market share," according to Fitzgerald. The CEO says these joint efforts will be aimed primarily at the mobile and Windows markets and at specific vertical industries, such as healthcare, communications and financial services.

The deal looks to be a good one for both companies. Novadigm is teaming up with a partner that has a large direct sales force and a strong global distribution channel, while HP is extending OpenView's capabilities to offer management of a wide range of software and content. Radia software reportedly allows IT managers to oversee specific applications for as many as 100,000 computers. HP's Jim Grant, pointing out that OpenView is "the cornerstone of HP's e-services initiatives" as far as software is concerned, touted the alliance as one that will promote "e-services management" and enable HP to further penetrate the dotcom and service provider markets.