Compaq UK has slashed list prices on its PC server range and launched a one-off price promotion backed by #1 million advertising campaign.
The aim is to cut excess inventory, one of the causes of the company's recent profits warning, and inject new momentum into its battle against Dell, which has been making rapid gains in the corporate space.
List prices were cut yesterday across departmental models, including the Proliant 1600 and 3000. The upmarket Prosignia 200 servers saw price cuts of up to 29 per cent.
In the UK, Compaq is continuing its Server Exchange programme until the end of April, offering up to #1,300 to customers who trade in an old server from another supplier and upgrade to a Compaq model.
Hugh Jenkins, Compaq's systems group marketing manager, said the company continued to outsell the next six biggest departmental server vendors put together.
He said: "We're doing an advertising campaign in the national and the IT press for this promotion until the end of June, spending #1 million. It's no secret that pricing is pretty tough in this market and ourselves, Dell, HP and IBM are fighting it out."
He added: "We're now in the process of moving to a build to order model and by the year end, worldwide, we'll have driven down our inventory to only a couple of weeks." Compaq UK, he said, had not suffered from the same problems as the US division.
According to Dataquest, Compaq sold 41 per cent of all servers in 1997, up from 36.8 per cent in 1996.
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