HP, NetLedger in New Pay-as-you-go Alliance

Call it on-demand computing services packaged for the smaller business set. Computer systems vendor Hewlett-Packard has struck a new alliance with enterprise resource planning software provider NetLedger to offer a range of pay-as-you-go hardware and software services.

The two companies said they would work together to offer a range of computing services — from hardware to online business management applications — to small and medium sized businesses (SMB).

The collaboration is built to target some of the current sweet spots for software and systems vendors, such as helping medium-sized businesses adopt integrated suites of business management applications.

The companies said the alliance would enable SMBs to manage their entire business using HP products and NetLedger’s NetSuite, its flagship suite of front- and back-office business management software applications.

The target: more than seven million SMBs across the United States. HP and San Mateo, Calif.-based NetLedger said they would offer complete service, support and solutions that help small businesses increase productivity and efficiency while reducing IT costs.

HP and NetLedger said they plant to market both hardware, such as HP’s Proliant line of servers, and software, including Oracle’s Small Business Suite of business management applications, using multiple channels.

In addition, the companies plan to extend the new alliance to their own network of resellers, with HP’s financial services leasing division as the designated leasing agent.

NetLedger already deploys an earlier version of on-demand services by pricing its software by the seat. The company said applications start at about $50 per user per month and encompass the full range of business applications: accounting, payroll, sales and customer support, order processing, inventory management, Web site and Web-store creation and hosting.

The collaboration with HP’s hardware side of the house is a first for NetLedger, company officials said. “This alliance will greatly streamline acquisition of turnkey solutions and will offer small businesses a predictable and reliable way to purchase integrated solutions for their company,” said Zach Nelson, president and chief executive officer, NetLedger.