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Moto Leans On HP

Motorola Inc. (NYSE: MOT) is turning to IT giant Hewlett-Packard Co. (NYSE: HPQ) for help in the development of its CDMA and iDEN kit, outsourcing certain elements of the core network.

The vendor is to incorporate HP's Integrity 64-bit servers, "hardened" Linux operating system, and OpenCall signaling software into its infrastructure (see Moto, HP Team on Networks).

Motorola is planning a staged rollout of the HP-enabled networks.

"Motorola's plans for the iDEN rollout are [slated for] the fourth quarter of 2004, and they are targeting CDMA network rollout in mid 2005," says Joy King, director of worldwide industry marketing for the network and service provider business at HP. "We are already in the process of supplying the kit to Motorola."

A Motorola spokeswoman added that a deal for W-CDMA networks is "not presently planned."

Despite a history of partnerships between the two companies, King insists that HP had to fight for this deal. "Our relationship with Motorola means we get invited to dinner but are never alone. We had to compete very vigorously with other IT vendors who were aggressively pursuing it."

King also suggests that further vendor deals are likely: "Most of the traditional networks were built on proprietary technology, but the dynamics of the market are changing... Vendors need to address ways to drastically reduce expenditure in the central call path of the network. All vendors are looking for somebody to partner with so they can redirect their investment into the middleware and high-value software, rather than putting investment into the platform infrastructure. You'd have a hard time coming up with a vendor we aren't talking to."

— Justin Springham, Senior Editor, Europe, Unstrung

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