Compaq?s CEO has hit out at Dell and described it as a second-tier vendor, saying that cheap machines will not deliver the total cost of ownership.
Eckhard Pfeiffer flew into a Computacenter-hosted event especially, he said. Giving a brief 25 minute presentation, he then flew back to Texas.
Pfeiffer said: ?There is a lot of consolidation in the industry. In the last two years, the top four vendors have moved from 24 per cent of the marketplace to 35 per cent.?
Compaq re-engineered itself in July of this year, he claimed. ?Compaq is racing ahead in the consolidation process. We have prices which are between five to 10 per cent lower than Dell?s.
He added: ?This is not a one time event, we?re committed to being price competitive. Most customers can?t deal with the direct model, and customers need the value added dealer, even if it adds between $110 to $150 on a box.?
Said Pfeiffer: ?We have 65 per cent greater residual values than tier two vendors,? referring to Dell. ?We?ve achieved leadership in the total cost of ownership argument. Our products have real service and support and this is especially impressive compared to direct competitors.?
The argument, said Pfeiffer, had proved compelling for Computacenter customers.
He said: ?Andersen Consulting are 100 per cent Compaq and they showed 45 per cent lower total cost of ownership.?
Mike Davies, general manager of Computacenter in the UK, which also sells NCs from IBM as well as Net PCs from Compaq, said that the figures depended on the customer.
He said that his company?s job was to sell its customers the solutions they wanted and that meant the arguments about the total cost of ownership differed, depending on the corporation it spoke to.
Dell was unable to comment at press time.
Three weeks ago, Mike Norris, CEO of Computacenter in the UK, said he preferred IBM as a channel partner to Compaq.
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