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

To: Elwood P. Dowd who wrote (35683)	11/2/1998 7:28:00 PM
From: John Koligman	Read Replies (1) \| Respond to of 97611

IBM also going after small business with packaged E-Commerce solutions, but with CompUSA... John IBM Joins CompUSA To Target Small Biz (11/02/98 1:56 p.m. ET) By Mo Krochmal, TechWeb NEW YORK -- IBM and CompUSA are banding together to provide one-stop shopping for the IT needs of small and midsized businesses. CompUSA will offer two packages of IBM hardware and software products designed to help small businesses create a network or simply take their first steps onto the Internet. The small- and midsized-business IT market is relatively untapped, and is quickly becoming a battlefield for the top four PC makers: Compaq, Dell, IBM, and Hewlett-Packard. The four shipped 46 percent of all desktop computers to U.S. businesses last year, according to market researcher Dataquest of San Jose, Calif. Compaq, Gateway, HP, and Dell already have small-business programs, but the IBM-CompUSA partnership is unique, said James Staten, an analyst with Dataquest. "None of the others are using a retailer," he said. According to New York-based consultancy Access Media International, small businesses spent $138 billion on IT and telecommunications products in 1997; $58 billion was for IT. Access Media said it expects the IT market to grow to $73.5 billion this year. "Most small businesses now are in what we call the second wave of adoption," said Ryan Brock, an analyst with Access Media. "They are getting connected, building networks, and putting up Web pages. There is a good rate of adoption." CompUSA will sell the Small Business Internet Solution, which includes a computer, monitor, modem, Internet connection, website hosting, and an e-commerce software package. The e-commerce software, called Home Page Creator, offers "shopping cart" applications and secure connections for transactions. The second package is a client/server network suite that includes a server and client computers, network cards, a hub, modem, and message and network software. The suggested lease price for the connectivity package is $60 a month; the networking package will cost $120 a month. Both packages will be available, with service and support, at CompUSA's business centers. "For retail chains to reach small businesses, they are going to have to offer services, not just off-the-shelf products," said Brock. The majority of small businesses in the United States are just starting to explore IT, and they usually purchase hardware and software from retailers rather than resellers, who also sell support and services. But as their needs become more complex, they eventually move to a reseller. "CompUSA is trying to build Business Center, which is a [reseller] inside a retailer," said Staten.