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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (93200)	9/25/2001 11:32:41 AM
From: Night Writer	Read Replies (1) \| Respond to of 97611

Compaq expands service packages to small businesses NEW YORK, Sept 25 (Reuters) - As part of its plan to strengthen its computer services offerings, No. 2 personal computer maker Compaq Computer Corp. <CPQ.N> is expected to announce on Tuesday several low-priced service packages aimed at small- and medium-size businesses. The Houston-based company, which agreed Sept. 4 to a merger with competitor Hewlett-Packard Co. <HWP.N>, said the packages, called Access on Demand, are similar to those it began offering in July to large customers. For $99 to $169 a month, companies can purchase either an Evo brand desktop computer or a mobile computer and receive basic installation and warranty, help desk, technology upgrades, asset reporting and program management for a three- year period, Compaq said. Small and medium-size companies, or those with fewer than 500 employees, accounted for about 65 percent of desktop and portable personal computers sold in 2000, according to IDC. The company's planned merger with Hewlett-Packard plays into this trend toward services, Compaq executives said. "I think if anything the merger with HP would accentuate this trend towards services-based selling," said Mike Winkler, executive vice president of global business units at Compaq. Winkler said that, while Compaq had offered such services before, the packages makes the services more affordable. He declined to say how much less the services are now. In June, Compaq said it would stop making computer chips and beef up its services, underscoring a move among computer makers to make money on software and support rather than hardware. Compaq agreed earlier this month to be acquired by Hewlett-Packard in a deal then valued at $25 billion. Since then the value of the deal has fallen to about $17 billion due to a drop in Hewlett-Packard's stock price. ((Caroline Humer, New York Technology Desk, 1 646 223-6181)) REUTERS