Hard on the heels of Hewlett-Packard Co’s e-PC (CI No 3,787), Compaq Computer Corp has thrown its hat into the corporate appliance ring with a net device it calls the iPaq. Like the e- PC, the iPaq boasts a small footprint and USB ports in place of ISA or PCI. Also like the e-PC, Compaq’s new device extends the promise of far lower support costs and total cost of ownership than a traditional white-box business PC. Compaq calls it a legacy-free Windows 2000 device. It’s simplified, consistent and stable with a 12-month lifecycle, explained group general manager of the commercial PC group Mike Winkler, making it easier for companies to maintain and lower support costs.
Compaq recently relinquished its number one spot in the US PC market to rival Dell Computer Corp. For two quarters now, the PC unit has suffered losses in the hundreds of millions. The OEM is scrambling to distinguish its products in a market characterized by increasing conformity between PC manufacturers and plummeting prices for hardware. If margins are to be increased, they will be increased on value-added services, and to that end, Compaq has also announced an internet destination for what it calls the business to employee market. American Express, CMGI, Intel, Microsoft and Siebel have signed up to provide content and services to the new web site. It’s slated to go live in the first quarter 2000. Whether Compaq can make more money as a content provider than a box-shifter remains to be seen.
