Bezos to McNealy: Drop Dead!
NEW YORK, May 31, 2000 -- Hewlett-Packard Company announced an agreement
with Amazon.com aimed at supporting the Internet-based infrastructure
and enhancing the selection of HP products available at the world's leading
this announcement at HP's meeting for security analysts, HP becomes the
primary Internet infrastructure provider for Amazon.com and will supply
90 percent of their applicable infrastructure requirements. By doing so,
HP will expand its role in supporting the company's operations to include
the advanced Internet servers and storage that will power Amazon's Web
site, distribution and supply-chain management processes, as well as PCs
for Amazon's employees at work. HP will also provide always-on infrastructure
support services to ensure the company's systems work effectively during
peak e-tailing sessions. This agreement means Amazon will become one of
HP's top five customers.
about time HP had a high profile enterprise win. HP has enjoyed a well-earned
power climb toward the top of the PC charts. To date, this growth has
been sparked by the retail and consumer sectors. We have previously predicted
global unit sales for HP to reach 9.9 million units during 2000 (See TEC
"Medals" In U.S. PC Olympics.) A diverse rally is a robust rally.
With recent investment analysts revising global 2000 PC sales forecasts
upwards, adding HP to the 10 million unit club (current members - only
Dell & Compaq) is almost a given.
marketing has been rather quiet during the last few months. Sources inside
HP have informed TEC that CEO Carly Fiorina has been focusing company
attention inward, but to expect a more aggressive HP marketing strategy
to come out during the next few months. Amen to that, brother. Or, more
loss follows another high profile loss for Sun. Network Solutions Inc.
selected IBM's S80 over the Sun Enterprise E10000 to run in the Internet's
top-level domain A root servers. One wonders if Sun can still call itself
"the dot in dotcom."
Fiorina's HP is out of the bunker, and on the attack. Sun has no realistic
desktop offering for enterprise customers, and Dell lacks a high end RISC
offering - but we expect the battle will be between Compaq & HP.
There are really only three companies in the world with a capability for
desktops, servers, and mid range RISC systems - HP, IBM, and Compaq. Of
the three, IBM has been de-emphasizing its desktop business. As discussed
above, enterprise customers of either Compaq or HP should pit one against
the other. Both companies will be hungry for your business.