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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.

Stephen Shankland Former Principal Writer
Stephen Shankland worked at CNET from 1998 to 2024 and wrote about processors, digital photography, AI, quantum computing, computer science, materials science, supercomputers, drones, browsers, 3D printing, USB, and new computing technology in general. He has a soft spot in his heart for standards groups and I/O interfaces. His first big scoop was about radioactive cat poop.
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  • Shankland covered the tech industry for more than 25 years and was a science writer for five years before that. He has deep expertise in microprocessors, digital photography, computer hardware and software, internet standards, web technology, and more.
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Stephen Shankland
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.