Microsoft is still an important partner, Hurd was quick to add, but HP wants its own OS for certain devices.

"Microsoft is probably one of the best relationships we've got in our company, and they're still extremely important to us," he said. "There are a couple of form factors, though, that are very attractive for us, and these small form factors is where we think the IP can be very additive."

HP announced its plans to last month. The company's webOS has won some praise, but Palm has still struggled to compete against Apple's iPhone, Research In Motion's BlackBerry, and a new wave of handsets based on Google's Android OS. HP hopes to close the deal in the third quarter, subject to approval from Palm's stockholders.

HP unveiled its most advanced Web-connected printer last June, the . It has a 4.3-inch touchscreen that lets users view, format and print content from Web sites that HP has partnerships with, such as Google Maps, the USA Today newspaper, Coupons.com and the Fandango ticket service.

It also hooks up to an HP store where customers can download applications for other Web sites. Hurd also suggested that HP plans to use Palm's app store for its printers and other devices.