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Hewlett-Packard nixes e-business software

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Palo Alto, Calif.--Hewlett-Packard Co. will discontinue production of its e-business software after the products failed to catch on, an HP executive said.

In a presentation to analysts, Peter Blackmore, exec VP of HP's enterprise systems group, said the company has suffered heavy losses with its e-business software and will now partner with other software companies to offer HP customers the programs they need to take their business to the Web.

"Many of the assets we have there we will retire, and we're going to move to a partnered strategy because that is what the customer wants," Blackmore said. "We move to a partnership model and then make that part of the business, avoid the losses we have and make the overall software business profitable."

On Thursday, however, an HP representative was reportedly more guarded about the company's plans. The representative said Blackwell's comments were "premature" and that HP executives are still weighing all options, which include the possibility of leaving the e-business software market.

The company will formally announce its software strategy at the end of June, the representative said.

--Matthew Schwartz

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