Accelerating Its Services-led Strategy, Compaq Delivers Both Solutions &
Growing Momentum
Recent 'Public' Wins Grow to Over $4.5 Billion as Compaq Gains
Two New Customer Agreements Worth $450 Million
HOUSTON, Dec. 20 /PRNewswire/ -- Compaq Computer Corporation (NYSE: CPQ)
says its strategy to become a more services-led IT solutions provider to
enterprise customers is driving solid momentum in the marketplace. Reflecting
on a series of major customer wins announced in just the past few weeks,
Executive Vice President for Worldwide Sales and Services Peter Blackmore says
Compaq is executing effectively on the strategy outlined by CEO Michael
Capellas in a widely publicized memorandum last June.
"We are gaining tremendous momentum in the marketplace, proving that our
strategy to lead with services and provide end-to-end IT solutions is
working," Blackmore said. "The proof of the pudding is in the eating -- our
enterprise customers are endorsing our strategy by voting with their business.
"Every major win we have announced this fall has seen our solutions span
the customer's enterprise with services and multiple technologies, from
infrastructure to distributed computing and access," Blackmore stated. "All
of these wins were very large, competitive tenders, totaling more than
$4.5 billion in multi-year commitments. In fact, just today we announced a
$250 million win with Raytheon." (See related news release: "Compaq and
Raytheon Enter 3-Year Agreement Valued Up To $250 Million.")
Blackmore also noted that global telecommunications leader Ericsson is
announcing that it's expanding its IT business with Compaq by more than
$200 million over the next five years.
Blackmore emphasized that the publicly disclosed wins are just a small
portion of Compaq's enterprise customer revenue and recent wins, because not
all customers consent to publicly announce their decisions. "The fact that
many of these major contracts call for commitments of three to five years is a
huge endorsement. It clearly demonstrates our customers' belief in Compaq's
ability to deliver innovative solutions today and in the future," Blackmore
said.
Compaq's recent customer-related announcements have included:
* A $1 billion agreement to provide all Windows -- and Intel-based
systems for the world's largest mail delivery system -- the United
States Postal Service -- during the next five years (renewable for a
second five year period in comparable amount)
* A multi-year deal to provide services and desktop/portable computing
solutions for the world's largest automobile manufacturer -- General
Motors
* A $95 million services contract with the world's leading manufacturer
of jet aircraft engines -- General Electric Aircraft Engines
* A five-year, multi-million dollar contract to provide technology,
services, and support to American Express worldwide, including 25,000
Thin Clients and 400 Compaq ProLiant servers in the U.S., Europe, Asia,
and South America
* A $36 million (US) agreement to provide Regus, the world's leading
provider of serviced office accommodation, with IT support and
infrastructure across 390 business centers in 50 countries (The
contract includes data center management, local and wide area networks,
hardware infrastructure, operating systems, help desk & engineering
support, business continuity and e-business applications.)
* A seven-year, $25 million agreement with the University of
Wisconsin-Stout to support the school's mobility initiative
* An agreement with Meijer Stores LP, a prominent operator of retail
supercenters, to maintain and upgrade more than 6,000 seats in
150 locations under Compaq's Intelligent Manageability program -- a
suite of tools designed to simplify PC management, increase IT
efficiency, and lower costs
* A three-year, $20 million per year agreement with global healthcare
company Cardinal Health
* Adoption of a Compaq thin-client/industry standard server model by
Chapel Hill-Carrboro City Public Schools in North Carolina, which
encompasses more than 3,500 computing stations
Continuing Strength in Vertical Markets
"A key element of Compaq's strategy," continued Blackmore, "is a far
greater emphasis on building and delivering integrated, repeatable solutions
that create value by solving customer and industry-specific problems. Again,
the tremendous response from our customers demonstrates our growing success in
vertical markets." The new contracts outlined above -- and other recent
customer successes -- build on Compaq's established presence in key vertical
industries, including:
* Telecommunications
The company's strength in the industry is demonstrated by several facts:
Compaq systems at telecommunications customers process 200 million credit card
and collect phone calls per day, 80 percent of the billing and customer care
in Europe, and the majority of all U.S. 911 emergency calls. Also, over
70 million cellular phone users rely on Compaq home location register (HLR)
capability to complete their calls, without ever knowing it. Recent successes
with telecommunications customers include expanded IT services business with
global telecommunications leader Ericsson in a just-announced deal worth more
than $200 million over the next five years.
Vodafone UK Limited -- operating a digital cellular radio network with
12.8 million customers -- announced this week it is deploying Compaq's TeMIP
(Telecommunications Management Information Platform) solution to provide
network and services management. Compaq Global Services will integrate the
solution into Vodafone UK's network.
Compaq will supply Manitoba Telecom Services Inc. (MTS) with systems
integration, AlphaServer platforms running Tru64 UNIX, StorageWorks
technology, and services support. British Telecom recently entered into a
$45 million (US) agreement with Compaq for services, and the
telecommunications company in China's Szechwan province entered an agreement
with Compaq worth more than $100 million.
* Finance
In the finance industry, Compaq powers the world's 15 largest stock
exchanges and processes 95 percent of the world's securities transactions. In
addition, 66 percent of all ATM or point of sale (POS) transactions are
processed on Compaq systems and 75 percent of the world's electronic funds
transfers rely on Compaq. Recent successes with finance customers include:
Bank of America recently picked Compaq to provide single-source service
and support as well as hardware to the bank's corporate offices and banking
center locations in the United States. In addition to extensive services, the
contract calls for 4,000 professional workstations, 6,000 ProLiant servers,
and 120,000 desktops.
A recently announced multi-million dollar global enterprise agreement with
Willis Group Holdings -- a leading global insurance brokerage firm -- will
standardize IT equipment and services at Willis on Compaq platforms across
more than 300 offices in over 100 countries.
SunTrust Banks, Inc., the nation's ninth-largest commercial banking
organization, recently named Compaq the provider of choice for a multi-million
dollar technology upgrade project in more than 415 branches and 10 training
offices.
BB&T Corporation, Winston-Salem, NC, signed a multi-million, two-year
agreement for thousands of desktop PCs and professional workstations to be
deployed in corporate offices, branches, and subsidiaries in nine states and
the District of Columbia.
* Travel
Compaq's presence in the travel industry is becoming more widespread. For
example, Sabre Holdings Corporation recently announced it would begin
migrating its mainframe applications to Compaq's NonStop Himalaya server and
database environment to create the next generation travel technology platform.
The value of this recent multi-year agreement is in excess of $100 million.
A Global Enterprise agreement with Worldspan(R) -- a global leader in the
travel industry -- will halve the time to deploy IT equipment and services
across more than 20,000 locations in nearly 70 countries for the company.
Cathay Pacific Airways just placed thousands of Compaq iPAQ Pocket PCs in
the hands of premium air passengers purchasing round-trip business or
first-class tickets between Los Angeles, San Francisco, New York, Toronto or
Vancouver, and Hong Kong. And British Airways recently completed a pilot
project at New York's JFK Airport in which passengers could use iPAQ handheld
PCs, connected via a wireless network, for real-time Internet access.
Company Background
Founded in 1982, Compaq Computer Corporation is a leading global provider
of enterprise technology and solutions. Compaq designs, develops,
manufactures and markets hardware, software, solutions and services, including
industry-leading enterprise storage and computing solutions, fault-tolerant
business-critical solutions, communication products, and desktop and portable
personal computers that are sold in more than 200 countries. Information on
Compaq and its products and services is available at compaq.com .
Compaq, ProLiant, AlphaServer, Tru64, StorageWorks, NonStop, Himalaya,
iPAQ, and the Compaq logo are trademarks of Compaq Information Technologies
Group, L.P. This news release may contain forward-looking statements that
involve risks, uncertainties and assumptions. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements. Risks, uncertainties and assumptions include the
possibility that the Hewlett-Packard/Compaq merger does not close or that the
companies may be required to modify aspects of the transaction to achieve
regulatory approval or that prior to the closing of the proposed merger, the
businesses of the companies suffer due to uncertainty; the market for the sale
of certain products and services may not develop as expected; that development
of these products and services may not proceed as planned; that Compaq and
Hewlett-Packard are unable to transition customers, successfully execute their
integration strategies, or achieve planned synergies; other risks that are
described from time to time in Compaq and Hewlett-Packard's Securities and
Exchange Commission reports (including but not limited to Compaq's annual
report on Form 10-K for the year ended December 31, 2000, HP's annual report
on Form 10-K for the year ended October 31, 2000, and subsequently filed
reports). If any of these risks or uncertainties materializes or any of these
assumptions proves incorrect, Compaq's results could differ materially from
Compaq's expectations in these statements. Compaq assumes no obligation and
does not intend to update these forward-looking statements.
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SOURCE Compaq Computer Corporation
-0- 12/20/2001
/CONTACT: Alan E. Hodel, +1-281-518-8932, alan.hodel@compaq.com, or
Francine Fiano, +1-203-254-8231, francine.fiano@compaq.com, both of Compaq
Computer Corporation/
/Photo: NewsCom: newscom.com
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840/
/Web site: compaq.com /
(CPQ)
CO: Compaq Computer Corporation
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