HP, Circadence Ally on Internet QoS

HP has forged an alliance with Boulder, Colo.-based Circadence Corp., a developer of Internet quality of service (QoS) solutions. The deal calls for HP to provide up to $54 million in convertible debt to finance the Circadence QoS Network.

Under terms of the agreement, HP will make Circadence Conductor technology available as part of its e-service offerings through the HP channel. In addition, HP will become one of Circadence's integral technology associates by providing the hardware, services, support, and financing necessary to build Circadence's network operations center and support future growth in the company's development of QoS solutions.

What HP calls the always-on infrastructure is an essential part of the company's overall e-services strategy. It is allying with Circadence so that it can simplify the steps that enterprises, services providers, and dot coms must complete to build and run a high availability, secure Internet business.

Circadence president and CEO claimed that poor online service causes e-businesses to lose more than $300 million each month and that the Circadence product resolves some of these QoS issues. Circadence's Conductor QoS networking technology allows e-businesses to set criteria to automatically identify their most valuable customers and then allocate additional resources to enhance QoS by prioritizing content, preserving bandwidth, and reducing the effects of latency.