The completion of the acquisition of Mercury Interactive has enabled the HP Software Group to restructure its product offering as well as its R&D, marketing, and sales organizations. Mercury had achieved remarkable success in selling business-oriented management software — one of HP OpenView's weaker spots — and most of the product line complements the existing HP OpenView portfolio, so the combination of both companies is compelling. HP will now replace both the OpenView and Mercury brands with the simple HP Software brand, and will simplify and organize the product structure into product families or "centers." The sales forces will be integrated through 2007 into a consolidated HP Software sales force working as part of HP's enterprise sales force. But with HP Software contributing only around 50% of the total revenues that HP generates in software products, HP has also missed an opportunity to raise awareness of its software business, and the sales force integration will not be a trivial exercise.
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