H-P Recruits Alcatel for Cisco War

(Updates share prices throughout)

Hewlett-Packard(HPQ Quote) has raised the stakes in its battle with networking giant Cisco(CSCO Quote) by forging a 10-year global alliance with telecom equipment maker Alcatel-Lucent(ALU Quote).

Cisco sent shockwaves through the tech sector when it entered the server market with its Unified Computing System (UCS) earlier this year, effectively stepping on the toes of its long-standing partners IBM(IBM Quote) and H-P.

The move prompted belligerent noises from H-P, which retaliated with the launch of its BladeSystem Matrix. H-P has also ramped up its efforts around its own ProCurve networking gear. ...