HP Holds Navy Network ‘Hostage’ for $3.3 Billion

[TheLegacy]

Someday, somehow, the U.S. Navy would like to run its networks — maybe even own its computers again. After 10 years and nearly $10 billion, many sailors are tired of leasing their PCs, and relying on a private contractor to operate most of their data systems. Troops are sick of getting stuck with inboxes that hold 150 times less than a Gmail account, and local networks that go down for days while Microsoft Office 2007 gets installed … in 2010. But the Navy just can’t quit its tangled relationship with Hewlett-Packard. The admirals and the firm recently signed another $3.3 billion no-bid contract that begins Oct. 1st. It’s a final, five-year deal, both sides promise, to let the Navy gently wean itself from its reliance on HP. But that’s what they said the last time, and the time before that.

It’s become a Washington cliché that the military and the intelligence community rely too much on outside contractors. Everyone from President Obama to Defense Secretary Robert Gates has promised to cut back on Pentagon outsourcing. But the Navy’s ongoing inability to separate itself from Hewlett-Packard – after years of trying – shows how difficult that withdrawal is going to be.



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