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HP World Producer Closes Its Doors

Cancellation a month before event blamed on launch by competitor

By Margo McCall -- Tradeshow Week, 8/1/2005

For more than three decades, Interex had been putting together an annual gathering for Hewlett-Packard users. But just one month before HP World Conference & Expo was set to open at San Francisco's Moscone Center, the nonprofit group abruptly closed its doors.

For some, the demise of Interex — short for Intl. Assn. of Hewlett-Packard Computing Professionals — came as no surprise. The event's namesake company had been nipping at Interex's heels with its plan to unite user groups under the umbrella of the HP Technology Forum, an event the company is launching Sept. 12–15 at the Ernest N. Morial Convention Center in New Orleans.

But others were surprised to hear of Interex shuttering its Sunnyvale, Calif., headquarters, laying off its 30 staff members and ceasing its magazine, newsletters and annual event for an estimated 86,000 association members. Founded in 1974 by Doug Mecham as the HP 3000 Users Group, Interex also operated several technical discussion groups.

The situation left some exhibitors incensed, since initial word of HP World's cancellation came through the grapevine or user group sites rather than Interex itself. Eventually, Interex sent exhibitors e-mails and posted a message on its site stating, "It is with great sadness that, after 31 years, we have found it financially necessary to close the doors at Interex."

About 100 exhibitors had purchased space at HP World, set for Aug. 14–18. That was down from the 170 drawn to last year's event, and well below expectations. Back in 2001, the event drew about 11,000 attendees.

Besides lost business opportunities, exhibitors grappled with the possibility that booth fees wouldn't be refunded. "I'm very unhappy since I just committed to buying a booth three weeks ago," said Ken Smith, owner and president of Software Technology Concepts, an Erie, Pa., company that has been selling products to the HP community for 25 years.

Smith, a longtime exhibitor at HP World, said he was relieved that he'd not yet made travel arrangements or ordered booth carpet and furnishings. He added that he has no plans to attend the HP proprietary event.

"The risk is too great for a company my size," Smith said. "I certainly won't be going to the HP event. I'm very unhappy with HP now."

HP quickly set up a Web site and toll-free number to steer HP World attendees and exhibitors to its technology forum. The company offered attendees free registration, and exhibitors and sponsors discounted rates.

"The goal here is to make sure no one gets lost in the shuffle as a result of Interex's decision to cancel the show," HP spokesman Ryan Donovan said. "We regret the fact that they've decided to cancel this."

While a full-conference pass for HP's technology forum costs $1,045, Interex was charging up to $1,890 for the HP World conference.

Exhibitors and board members, meanwhile, said HP seemed intent on eliminating the long-running HP World, which had prided itself as being HP-centric, but independent.

"HP has been annoyed that Interex had the license to the HP World name. They wanted the name back; they wanted to control the conference," said Bob Combs, past chairman of Interex. "They're the big guy. They got their way."

Donovan said holding a unified user conference would enable the company to better control its message. As well, he added, it will be a more efficient use of resources for the company, which just announced that 14,500 more people are to be pared from the payroll.

HP last summer revealed launch plans for its September conference and its proposal to unite all user groups. The company remained premier sponsor for last year's HP World in Chicago.

Combs, who has been involved with Interex for more than two decades, said he fears the HP event will devolve into "a training event for salespeople," rather than an opportunity to evaluate technological options.

According to HP, the technology forum, which will feature 400 conference sessions, is designed to "meet the training needs of the entire HP technical community." The event is also slated to include a 100,000 net square foot exhibit area, highlighted by the 12,000 sq. ft. "HP solutions showcase."

As of press time, the forum had signed up 66 exhibitors, including at least a dozen that had also committed to participating in HP World. HP partners BEA Systems, Cisco Systems, Citrix Systems, Intel, Microsoft and Oracle have signed up as forum sponsors. Two smaller user groups, Encompass and OpenView Forum Intl., will also participate.

Not all independent HP user events will end with the demise of Interex. Although it is participating in the HP event, the OpenView group still plans to hold its independent event. The 7,000-member group just wrapped up its 13th annual HP Software Forum at Denver's Colorado Convention Center June 6–10, declaring that the event would return next June. Another HP user group, the Chicago-based Intl. Tandem User Group, still plans to hold its ITUG Conference & Expo Oct. 23–27 at the San Jose (Calif.) McEnery Convention Center. It will also hold a European conference in Berlin May 23–25.

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