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Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (1768)	9/17/2002 10:37:11 AM
From: PCSS	Read Replies (1) \| Respond to of 4345

Thanks for the catch on the good news - nice contract, good implications for future suches NOT having much impact although both DELL & IBM (mkts too) have turned negative while HPQ is still positive (+20)

To: Oeconomicus who wrote (1768)	9/17/2002 10:41:42 AM
From: kumar	Respond to of 4345

FWIW : CIBC has been a long term HP account. Remember Harris ?

To: Oeconomicus who wrote (1768)	9/17/2002 3:31:01 PM
From: The Duke of URL©	Respond to of 4345

Another look: HP banks on outsourcing deal By John G. Spooner Staff Writer, CNET News.com September 17, 2002, 9:21 AM PT The Canadian Imperial Bank of Commerce on Tuesday handed Hewlett-Packard the keys to its technology infrastructure. CIBC, which has about 8 million customers, will outsource the management of its information technology infrastructure to HP's services group in a seven-year agreement worth about $1.5 billion, the companies said in a conference call Tuesday morning. HP also announced Tuesday that it is expanding its outsourcing staff. Under the agreement with CIBC, the computing giant will manage a wide range of technology for the bank, including desktop PCs, computer networks and a mix of servers based on the Unix, Windows NT and OS/400 operating systems. HP will also handle purchasing for CIBC and provide application support services. "This is one of the largest outsourcing deals in terms of revenue that's been signed this year by any services company," said Ann Livermore, executive vice president for HP Services. It's also by far the biggest services agreement signed by HP since its merger with Compaq Computer last May, HP executives said. Gartner Dataquest analyst Bruce Caldwell said that the deal adds credibility to HP's services unit, particularly as HP looks to compete against IBM and Electronic Data Systems in large deals that include management of older, large computer systems. In particular, Caldwell noted that HP will be managing IBM midrange AS/400 and mainframe systems. "This puts them into the megadeal world," Caldwell said. The agreement arose from an existing relationship between HP and CIBC, said Mike Woeller, the bank's chief technology officer. The bank, which has been working with the technology company for about four years, considered options such as managing the infrastructure in-house, but stopped short of putting the contract up for bid. With the deal, HP is getting a larger slice of CIBC's business. Today HP is managing about 60 percent of CIBC's technology, but under the new deal, HP should eventually be handling nearly all of it, a bank executive said. "Our strategy is to increasingly consolidate our technology platforms into this environment," said CIBC Senior Vice President Grant Westcott. Under a separate agreement, HP will buy out Intria-HP, a joint technology services venture between the two companies. It was established in 1998 to provide outsourcing services to the bank as well as other Fortune 500 customers in North America. The deal will let HP expand its outsourcing capabilities, acquiring about 1,280 new services employees as well as two data centers, HP's Livermore said. "This move is a natural evolution for both of our companies and gives HP a tremendous opportunity," she said. Gartner Dataquest's Caldwell said that the unwinding of the joint venture probably won't mean a big change for HP's capabilities. "The joint venture has had its ups and downs," said Caldwell, who noted however that it is doing a significant amount of business--$5 billion in transactions a year. "Joint ventures tend to have a fairly short shelf life before something happens to change their status." By acquiring the joint venture, HP will be able to tout a wider array of services to potential customers. The move also frees HP to go after more business knowing it will have sufficient resources, said Juergen Rottler, a vice president in HP's services unit. The acquisition marks a potential milestone for HP Services. The division, which represents about 20 percent of the computing company's overall revenue, is looking to offer more to customers, Livermore said. "What you'll see us continue to do is aggressively focus on growing our services business. You'll see us do a whole variety of things associated with that," Livermore said. "You'll see us hire particular skills we might need. You'll see us consider other acquisition or joint ventures as well." Terms of the deal were not disclosed. News.com's Ian Fried contributed to this report. msnbc-cnet.com.com

To: Oeconomicus who wrote (1768)	9/18/2002 3:32:19 PM
From: Dave B	Read Replies (1) \| Respond to of 4345

DJ Disk-Storage Market Grows Slightly In 2Q From 1Q By Riva Richmond Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--The disk-storage hardware market grew slightly during the second quarter from the first quarter, a performance that could suggest the market is beginning to stabilize, said Eric Sheppard, an analyst at IDC, a technology research firm. IDC's report on the segment, published Wednesday, said revenue rose 0.9% to $4.7 billion in the second quarter from $4.66 billion in the first quarter. The disk-storage hardware market shrank 18.7% between the fourth and first quarters. Calendar 2002 will likely still show a double-digit decline from 2001 levels, Sheppard said. The competitive landscape shifted somewhat during the period, according to the report. International Business Machines Corp. (IBM), Sun Microsystems Inc. (SUN), EMC Corp. (EMC) and Dell Computer Corp. (DELL) all increased their shares of the market. Their gains came at the expense of Hewlett-Packard Co. (HPQ) and Hitachi Ltd. (HIT). H-P held the top spot with 24.9% of the $4.7 billion market, but its share fell from a combined H-P-Compaq share of 26.9% in the first quarter. The two companies merged in May, and the decline could suggest integration pains. "Via acquisition, H-P is now the largest disk-storage company. It might not be organic, but it's real," Sheppard said. "On their heels are a lot of vendors." During the quarter, IBM added 1.4 percentage points to its piece of the pie to reach 16.3%. The company was helped by strong sales of mid-range products and, perhaps, by a bump from a "refreshed" high-end offering, Sheppard said. Sun's market share jumped to 8.8% from 6.7%. The company was helped by its reseller relationship with Hitachi and a sales push for a strong fiscal-year close EMC's market share rose slightly to 13.7% from 13.3%. Dell, benefiting from its partnership with EMC, added a half point to reach a 5.8% share, moving ahead of Hitachi, which fell to the No. 6 spot with 4.8% of the market, down from 6.7% in the first quarter. Hitachi's decline isn't as bad as it looks, because IDC counts some of the revenue for its products under Sun and H-P. Network Appliance Inc. (NTAP) held steady with a 2.7% share. Despite the still-tough business environment, Sun saw revenue growth of 31.3%. IBM grew 10.8%, Dell 9.7%, EMC 3.7% and Network Appliance 4%. H-P's revenue declined 6.4% and Hitachi's fell 27.7%. In the fast-growing storage-area-network, or SAN, market, EMC maintained its lead with market share of 30.2%, up slightly from 30.1% in the first quarter. The total market for SANs, high-speed networks of shared storage devices, was $1.29 billion in the second quarter, up 5.1% from $1.23 billion in the first quarter. The merged H-P Compaq might have taken the No. 1 SAN position, but it came in second with a 28.2% share, compared with a combined 32% in the first quarter. Sun jumped 3.9 percentage points to a 11.9% share, and IBM and Dell both gained ground. Hitachi fell to 6.2% of the market from 8.5%, dropping to No. 5 from No. 4. In the market for network-attached storage, or NAS, EMC stretched its lead to 37.6% of the $396 million market. It had held 36.4% of a $379 million market in the first quarter. EMC's closest rival, Network Appliance, held steady at about 32.6%. Dell and H-P added to small slices of the market, while IBM and Hitachi foundered a bit. The direct access storage, or DAS, market, which is being displaced by networked devices, declined in revenue to $2.79 billion in the second quarter from $2.83 billion in the first quarter. The combined H-P Compaq was No.1, but saw a 7% revenue decline. Runners-up IBM, Sun and Dell saw their DAS sales increase. -Riva Richmond, Dow Jones Newswires; 201-938-5670; riva.richmond@dowjones.com (END) DOW JONES NEWS 09-18-02 03:14 PM