The 'new' HP vision

Hewlett Packard (HP) and Compaq today outlined their vision for the company if their controversial merger is successful.

The core of the proposed giant's strategy involves building better partner relationships with Intel and Microsoft.

"Our focus will be on strengthening partnerships with Microsoft, Intel, Oracle and SAP, but we will face challenges from our multiple architectures and roadmaps," said Michael Capellas, who is set to become HP president, at an analyst conference today.

Chairman and chief executive Carly Fiorina asserted that issues with multiple environments would be solved by "standardising on the Itanium platform across the entire server line up".

"The new HP will have the scope and the ability to challenge IBM," she added, saying that a key part of the company's strategy focused on "becoming stronger partners to Microsoft and Intel".

According to Fiorina, the deal will be clinched by the first half of next year. Apparently the company will be co-operating with the antitrust investigation in a bid to have the review done within six to nine months. She added that the move would be "tough" and job losses would form part of the merger.

"The whole strategy looks great on paper, but it means nothing if we can't integrate successfully," she said. "HP is in the midst of a reinvention process and synergies are tough to do anyway. It will also be tough taking people out of the business."