Amazon Ditches Sun, Compaq For HP



Hewlett-Packard struck Internet gold today, with the announcement that Amazon.com plans to switch 90% of its IT infrastructure from Sun Microsystems Corp. (stock: SUNW) and Compaq Computer Corp. (stock: CPQ)equipment to HP, which has lagged behind in the E-business race.

"It is a big coup for HP because it represents the most-visible and highest-volume B-to-C sites," says David Alschuler, an analyst with Aberdeen Group. "It provides significant credibility for HP in terms of scalability and availability."

In the 18-month deal, HP (stock: HWP) will supply servers and storage for the Web site; distribution and supply-chain management processes; and support services. Amazon is even replacing all of its PCs with HP computers. The deal makes Amazon one of HP's top five customers.

In a second agreement, HP will become an anchor tenant in Amazon's electronics store, offering an expanded selection of HP printers and handhelds.

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