Compaq drops Unisys servers, focuses on ProLiant

Compaq has decided to stop selling its 32-chip server, which is based on Unisys hardware, and will instead focus on selling its 8-way ProLiant servers.

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By  Robin Duff Published  May 2, 2001

Compaq has decided to stop selling its 32-chip server, which is based on Unisys hardware, from the end of this month, and will instead focus on selling its 8-way ProLiant servers. ProLiant servers, like the 32-CPU ML770, run the Windows 2000 Datacenter Server. The move will be seen as a blow to Microsoft, which has been trying to boost sales of Datacenter, its answer to Unix systems.

Compaq is one of seven hardware vendors that sell Datacenter on 32-CPU systems and says that 95% of its Windows 2000 Datacenter Server sales were 8-chip servers. The rest were for 32-way machines.
“The 32-way is quite expensive for us to carry,” said Tim Golden, director of enterprise server marketing at Compaq. The company had bought hundreds of Unisys servers for testing, said Golden, but customers were uninterested.

As a result of the move, Unisys is revamping its strategy for selling high-end servers, but it expects sales of the product to be unchanged this year. The company has added numbers to its existing sales force, and will now be able to target Compaq customer accounts it previously had planned to leave alone. Unisys reportedly had $100 million in revenue from server sales in 2000, and it hasn’t changed its plan to triple that amount this year. However the company is being forced to revise its plan to have more than half of the 2002 server revenue come from sales partners.

“The support we had around us is thinning,” said Peter Samson, general manager of technology sales development at Unisys. “Obviously we’re disappointed, although we bear no malice towards Compaq.”

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