Case Analysis – H P Cisco Alliance

Executive Summary
Problem statement: Despite HP- CISCO top management intentions and senior
and middle management commitment to renewed alliance stalemate has
reached, due to lack of clearly defined ground rules, absence of detailed plan
of action, cultural disconnect in decision making and non availability explicit
financial integration plan.

Summary of the problem: Despite being convinced and committed for the alliance, HP,
the largest and CISCO the third largest Silicon Valley IT Company, their alliance organization
could not reach to a formal agreement on how to move ahead with the progress of the
alliance origination even after five years of association, despite their success as alliance
partners with themselves and partners with other companies
HP the largest and Cisco third largest Silicon Valley IT Company’s f formed an alliance in
early 1997 for that focused on Technology collaboration, product integration, professional
services, and customer support. It took five years for the two companies to realize that they
can further formalize and expand their Alliance activities to gain synergistic advantages for
both companies. The timing coincided with HP –Compaq merger and the alliance agreement
further delayed by 6 months. Finally it started taking shape in October 2002. The top
managements of both organizations are willing and committed to the alliance. To this effect
that CEOs of both companies are expected to meet in Jan-2003.
Many events have taken place in five years since the alliance inception
HP and Cisco have excellent examples of alliances for them with other alliance partners

Widely respected technology companies in the world—HP and Cisco both appeared to be
very
desirable partners. Indeed, both management teams believed that forging a stronger, more
formal
alliance would produce benefits for both sides. Like all partnerships, however, the strategic
alliance faced some challenges, and it was the job of the alliance teams to solve these
issues to the best of their ability. As HP’s Russell and Heal prepared to meet with Cisco’s
Steinhilber and Thomas, they made some notes about actions they believed the two
companies could take to create an even more productive alliance in the future.