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Technology Stocks : Compaq

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To: Elwood P. Dowd who wrote (70295)10/27/1999 10:10:00 AM
From: John Koligman  Read Replies (3) of 97611
 
Since Ebay outage problems were discussed on the thread, here's an update on who Ebay is looking to for new gear. Looks like IBM mainframes may be the answer for them. No mention of Compaq...

John

Ebay leaning away from Sun servers

By Bloomberg News
Special to CNET News.com
October 26, 1999, 5:35 p.m. PT

URL: news.cnet.com

SAN JOSE--EBay, the No. 1 Internet auctioneer, said it's considering buying
computers from International Business Machines and Hewlett-Packard, a
possible blow to current supplier Sun Microsystems.

EBay is talking to IBM and Hewlett-Packard, the No. 1 and 2 computer
makers, as well as Sun about buying server computers that will power its
Web site, said chief executive Margaret Whitman. EBay will gradually
replace its computers in the next 12 to 18 months, she said.

Analysts have expected eBay would be looking to replace its computers after
several well-publicized failures this year. With an eBay sale, Hewlett-Packard
and IBM would gain prestige in the Internet market, which Sun has dominated
for the past two years.

"It certainly would be a black eye for Sun" if eBay went elsewhere for its
computers, said Gary Helmig, a Soundview Technology Group analyst who
rates IBM "buy."

The eBay site has had a string of failures, some of which the San Jose,
California-based company blamed on Sun. One software glitch traced to Sun
shut down eBay for almost a full day.

EBay is discussing the possibility of buying IBM mainframes and servers for
the site, said IBM spokesman Tim Ohsann. IBM computers are the basis of
Charles Schwab's Web trading site. Schwab, the largest Internet brokerage,
has been plagued by shutdowns, the latest a two-hour failure on Friday
caused by a software glitch.

EBay also is talking with IBM's services unit, which installs and runs computer
networks, IBM said.

Winning eBay as a client would be a coup for Hewlett-Packard, which is
trying to become a bigger player in Internet computing.

"It would make sense for them to talk to us," said Hewlett-Packard
spokesman Atchison Frazer, who declined to say if any negotiations were
under way.

EBay hasn't begun final negotiations to purchase the computers, Whitman
said.

"What we're working on is what the next generation of the eBay system will
be," she said. "We are looking at all options."

Sun officials couldn't be reached immediately to comment.
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