HP Aspires To Climb The Tower

Hydrasight believes that the acquisition announcement of Australian-headquartered Tower Software in April 2008 will deliver HP a credible and committed legacy customer base for electronic and physical records management. However, we believe that HP will not be able to fully capitalise on the Tower Software acquisition over the medium-long term. This will be due to a number of factors including reduced demand resulting from increasing customer interest and growth in enterprise content management (ECM) solutions outside traditional imaging, document, and records management applications. Moreover, Microsoft SharePoint as a non-direct competitor continues to provide a "good enough" solution for most users needs and is expected to continue to penetrate Tower Software's (and others) customer base with the help of partner-supplied extensions/solutions and a continued evolution of the platform.