Compaqs Surprise Partner
PC giant quietly subcontracts work to IBM as part of $1B U.S. Postal Service contract.Compaq Computer continues to deliver the goods to the U.S. Postal Service, but not without IBMs help. Compaq, which has worked with the postal service since 1994, says it has won a new 5- to 10-year contract worth up to $1 billion with the postal service. But the struggling PC giant also says IBM will work as a subcontractor on the deal, providing undisclosed products and services to the postal service.
Compaqs victory underscores the hardware veterans greatest challenge going forward: Compaq remains a respectable force in the rapidly maturing hardware market, but lacks IBMs breadth of products and services.