Compaq backs Windows 2000 for business customers
By Joe Wilcox
Staff Writer, CNET News.com
February 15, 2000, 12:35 p.m. PT
Compaq Computer is gambling that small- and medium-size businesses will flock to the
Windows 2000 operating system.
Days after a Gartner Group report indicated that one in four large businesses would have trouble
moving to Windows 2000, Compaq has set its sites on smaller operations.
In a two-fold strategy, the Houston-based PC maker today announced Windows 2000 systems and a
new Web site, MyWorkspace, especially for small business users.
Compaq expects the small business market will more quickly adopt Windows 2000 than will the
corporate market and plans a succession of initiatives aimed at garnering sales of Windows 2000
systems and services.
"We have found that small- and medium-business customers are quicker to move to newer
technologies than are large corporations," said Ray Frigo, vice president of Compaq's iServices
division.
In a recent survey conducted by International Data Corp., only about 5
percent of the smallest businesses said they planned to move to Windows
2000 in the next 12 months. But larger small business operations--those with
50 to 999 employees--are expected to move faster, with 17 percent planning
to go to Windows 2000.
"But that's before more exciting things happen around Windows 2000 and
they begin shopping around for new machines, most of which will come with
Windows 2000," said IDC analyst Ray Boggs. "We expect the adoption rate
to be much higher."
Microsoft will officially release Windows 2000 on Thursday, although
Compaq and other PC makers have been shipping systems with the new OS
since Jan. 24. Compaq initially offered Windows 2000 on iPaq and Deskpro
PCs.
Starting today, Windows 2000 will be available on Prosignia PCs, notebooks
and servers. Entry-level systems include: the Prosignia 340 PC, starting at
$1,099, and the $2,799 Prosignia 170 notebook. All systems also come with
Office 2000 Small Business Edition and Norton AntiVirus.
Compaq, in a turnabout on its direct sales strategy, will begin offering new Prosignia systems
through
major retailers, including Best Buy, Circuit City, CompUSA, Office Depot and Staples. Prosignia has
been Compaq's most direct product line, unlike most others, which are sold more through dealers.
While the move comes at a time when Compaq is ramping up to take more business direct, the retail
indirect strategy makes sense, said analysts.
"If Compaq is really going after the small, growing businesses, those are the companies that run
down to the Circuit City or Office Depot and buy off the shelf," said Technology Business Research
analyst Lindy Lesperance.
Compaq estimates about 25 percent of small business customers shop at retail.
Frigo said MyWorkspace reaffirms Compaq's relationship with MyWay.com, a CMGI company.
Compaq holds about 17 percent in CMGI, following the sale of AltaVista last year.
MyWay.com set up the business-to-business Web site, which provides a number of services geared
to business customers, such as electronic shipping and postage, online training and Web hosting.
While MyWorkspace is free for anyone to use, other offers and services are exclusive to buyers of
Windows 2000 Prosignia systems. These include: three months free Internet access with
Compaq.net, a customized e-commerce Web site and free Windows 2000 training.
The last item could be important to small business customers buying their first Windows 2000
system
and looking for more, said analysts. |
