This Time It's Microsoft and HP

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Things continue to be busy for both Microsoft and HP as they try and make headway in the ever-competitive IT industry.?
Not abandoning it's pursuit of the lucrative online advertising market, Microsoft has made a deal with HP to make Internet Explorer the default browser on HP PCs. Last month HP scooped up EDS to gain a larger portion of the enterprise consulting market. And to compete with Dell, everything from HP's packaging, computers, and the displays they sit on are undergoing changes.Microsoft too has been supercharging its efforts in the enterprise space as well. In fact, at this year's Convergence conference, Microsoft's business unit was given the same strategic importance as Microsoft's desire for online advertising.

So it seems like all the large IT companies are continuing to multitask to ensure they get a piece of the shrinking IT market in a contracting economy. They have a right to be concerned. A recent study by IDC shows that the majority of CIOs planning investments are focusing on cost reduction versus revenue generation.

One industry observer has even gone so far as to that say that for Microsoft to survive, it needs Yahoo because Vista has been doing poorly. But I'm not sure how much of this observation takes into account how Microsoft's business unit is doing. While it’s still behind enterprise software heavy weights, Oracle and SAP, Microsoft Dynamics has grown from number 15 to number 5 in the overall ERP market by servicing the SMB market. Additionally, the Dynamics line, particularly CRM has been well received.

Any thoughts?
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