Compaq: Storage Sales Strong Despite Merger Issues


The pending merger with Hewlett-Packard has not put a damper on Compaq Computer's storage sales, said Jim Milton, senior vice president and North America general manager for Compaq.

In fact, the company has signed over $900 million in storage sales contracts, amounting to over 63 Pbytes of raw capacity, worldwide between Sept. 3, when the merger was announced, and mid-March, said Milton. Of that, $300 million came from U.S. solution providers, he said. Separate figures for servers or other product lines were not available, he said.

Milton, who last week was introduced as the regional manager for the Americas for the Enterprise Systems Group of the new HP, if the merger is approved, said the pending merger has not affected business for Compaq. "This is despite the notions of many, including our competitors, that we are distracted," he said.

During the fourth quarter, Compaq started allowing solution providers to register potential deals as a way to qualify for improved financial incentives and help protect their investment in the client from being lost to another solution provider, Milton said. During that time, about $65 million of the company's U.S. storage business has been preregistered, he said.