Corporate Allies Switch Sides in PC Rivals? Battle

Compaq and Dell are battling for corporate market share, with three PC supply contracts changing hands last week.

Direct manufacturer Dell announced it had been accepted as one of the approved manufacturers for the NHS national PC and associated printers contract. The estimated value for the supply of PCs under the contract is #80 million a year until the year 2000. Dell is now hoping it can take as much of this business as possible.

The NHS deal sees Dell encroaching into what is traditionally Compaq?s territory.

But Dennis Devine, Dell public sector account manager, said the deal was an extension of the company?s existing work in this market.

?Dell has a dedicated healthcare division and understands the special requirements of the NHS,? he said.

A Compaq representative said Dell?s final share of the contract could turn out to be much smaller than it anticipated. ?It has a limited supply offering,? he said. ?It?s not as if it makes printers, is it??

At the same time, Compaq hit back at Dell by poaching a customer from it. Removal company Pickfords has replaced its Dell servers with Compaq Proliant 800 servers in each of its 70 branch offices. The deal is worth #200,000 and will take three months to complete.

Marks & Spencer has also recently opted to buy Compaq equipment. Rochdale-based Skillsgroup, formerly known as P&P, has been awarded a one-year contract to supply the retailer with Compaq servers, desktops and notebooks.

The deal will see Compaq become Marks & Spencer?s only PC hardware vendor.