Yahoo, Compaq ink technology pact

Computer World –

Yahoo Inc. has selected Compaq Computer Corp. to be its "preferred technology provider" under an agreement announced by the two companies today.

As part of the multiyear deal, Yahoo will purchase a wide range of Compaq hardware, software and services, including Compaq's Intel-based servers, enterprise server technologies, host-attached storage equipment, desktops, laptops and handhelds.

In return, Compaq will advertise and market its products and services on all Yahoo-owned properties worldwide, said Jeff Clarke, Compaq's vice president of worlwide finance and sales. Compaq's online store will also be a featured merchant on the Yahoo Shopping site.

Financial terms of the deal weren't disclosed.

This morning's agreement significantly broadens an existing relationship between the two companies, Clarke said.

"Compaq has been exclusively designated as Yahoo's preferred provider. ... We will be providing a major portion of Yahoo's Internet infrastructure" under the deal, he added. "It's a big deal. ... We are powering one of the Web's largest properties."

Compaq's agreement with Yahoo is similar to a deal it struck with The Walt Disney Co.'s Internet Group in November. Under that deal -- valued at more than $100 million over the next three years -- Compaq will provide servers and PCs to the Walt Disney unit and in return will advertise on Disney Web sites such as Disney.com, ESPN.com and ABCNews.com.

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