Tech Industry

HP invests in e-services partner

Hewlett-Packard is giving $8 million to Tesla Group, an e-commerce firm that plans to sell $32 million worth of HP products in the next two years.

Hewlett-Packard is giving $8 million to Tesla Group, an e-commerce firm that plans to sell $32 million worth of HP products in the next two years.

Tesla is the of parent company of E-Facilities, which hosts other companies' e-commerce sites, and StorNet, which designs e-commerce computer systems.

E-Facilities will use HP software and hardware for its hosting business, and HP will provide E-Facilities with $8 million in financing. StorNet will resell HP equipment as part of its services, the companies said.

StorNet expects to sell at least $32 million worth of HP equipment in the next two years, the company said.

The deal falls into the category of HP's "e-services" strategy, in which the computing giant has been signing deals left and right to try to catch up to the Internet plans of Sun and IBM. In these e-services deals, HP often has a direct stake in how well its business partners fare.

Sometimes HP has been giving hardware, software and services away for free, in exchange for which HP gets a fraction of revenues. And in the case of Security First, USA.net, Xcelera.com and Intira, HP has taken equity investments in the companies.