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Automobile industry

Hewlett-Packard and Ford Expand Partnership to Manage Private Internet

Strategic Insights

— 1 min read

Hewlett-Packard (HP) and Ford Motor Company have continued their long-term relationship, with HP managing Ford's private internet under a new three-year service and technology contract. The agreement, estimated to be worth $18 million over three years, follows the successful growth of Ford's private internet from 35 sites in 1991 to 225 sites in 1994. During this period, network traffic rose significantly, but availability for network users increased from 96% to 99.8%.

Key Takeaways:

  • The contract between HP and Ford is worth $6 million per year, with a total value of $18 million over three years.
  • HP will manage the day-to-day operations of Ford's private internet, including proactive network monitoring, network troubleshooting, and implementation services.
  • The partnership has resulted in a significant increase in network availability, from 96% to 99.8%, despite a significant rise in network traffic.
  • HP's expertise has helped Ford focus on core business functions, allowing the company to take advantage of new technologies and procedures.
  • The partnership has enabled Ford to expand its network into new regions, including Australia, China, Japan, and South and Central America.
  • HP has provided systems management for multivendor servers, clients, and software, as well as a help desk for end users in Ford's North American Product Development Group.
  • The partnership has led to increased productivity and quality for Ford, with the use of analytical engineering tools shortening the product-development cycle.

Statistics:

  • Network availability increased from 96% to 99.8% between 1991 and 1994.
  • Network traffic rose significantly during the same period.
  • The number of connected sites increased from 35 in 1991 to 225 in 1994.
  • HP generated $3.6 billion in service revenue through the support of products from more than 450 hardware and software vendors in 1994.
  • HP has 17,500 professionals worldwide providing service and support programs.

Sources:

  • Hewlett-Packard Company, "HP and Ford Expand Partnership to Manage Private Internet" (Business Wire, Sept. 18, 1995)
  • Ford Motor Company, "Ford and HP Expand Partnership to Manage Private Internet" (Press Release, Sept. 18, 1995)
  • Hewlett-Packard Company, "HP Operations Services Division" (Media Kit, 1995)

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