HP Poaches MTV Deal from IBM

MTV Networks will pay several million dollars for what the company calls "a powerful and scalable server platform to host its new advertising sales system." The new system will include multiple HP UNIX servers and storage products, along with consulting and support from HP Services. HP moves to raise its profile in the media industry with servers and storage products for the music network.

Some essential software will be provided by HP-MTV partner Management Sciences Associates, which will contribute to its new ad-sales hardware-software process, including program scheduling, order management, traffic and billing, all of which may improve MTV's prompt collection of revenues. The system will serve ads for MTV, MTV2, VH1, Nickelodeon, Nick-at-Nite, TV Land, CMT and TNN.

"It's a good win for HP, not only because of the systems that MTV will use, but because of the completeness of the contract," said John Madden, senior analyst for Summit Strategies, a Boston-based consultancy. "There are strong server, storage, clustering and HP Services elements here -- exactly the kind of deal that HP wants to raise its competitive profile against IBM and IBM Global Services. IBM has made headlines with some mega-outsourcing deals lately, so deals like this help HP show it can still provide alternatives to IBM and others that customers are interested in,"

HP was quick to point out its victory over IBM for the MTV Networks contract. In a press release, HP said "the solution marks a significant HP win over IBM and includes multiple 16-way HP rp8400 servers running on PA-8700+ processors on HP-UX 11i, HP StorageWorks virtual arrays, HP MC/Serviceguard clustering software and consulting and support from HP Services."

The HP-MTV deal also points to HP's Entertainment and Media organization, which is attempting to garner other high-profile contracts. In one of its most recent advertising campaigns, HP features Shrek to highlight the company's relationship with Dreamworks.

Other media customers of HP include, Blue Sky Studios, The Walt Disney Company , Walt Disney Feature Animation, Walt Disney Internet Group, Regal Cinemas Corp. , and the Sundance Film Institute.