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Compaq and Oracle Collaborate on Internet Procurement

Strategic Insights

— 2 min read

Compaq Computer Corporation, the second-largest computer company in the world, has chosen to deploy Oracle's Internet Procurement suite on its Compaq ProLiant servers and Compaq AlphaServers as part of its internal NonStop eBusiness infrastructure. The company aims to streamline its general procurement process, which will translate into significant savings, and leverage its enterprise-wide spending by automating the entire purchasing lifecycle. This move follows Compaq's recognition of general and administrative spending as a strategic business opportunity, where purchased products and services account for as much as 55 percent of revenue.

Key Takeaways:

  • Compaq will deploy Oracle's Internet Procurement suite on its Compaq ProLiant servers and Compaq AlphaServers to streamline its general procurement process and leverage its enterprise-wide spending.
  • The solution will enable Compaq to automate the entire purchasing lifecycle, including planning, procurement, and payment, via the Internet.
  • Purchased products and services account for up to 55 percent of revenue for most organizations (Aberdeen Group, "Strategic Procurement: The Next Wave of Procurement Automation," July 1999).
  • Compaq and Oracle plan to jointly test, optimize and market Oracle Internet Procurement solutions in Microsoft Windows NT and Compaq Tru64 UNIX operating environments.
  • Compaq Services will work with Oracle Consulting to develop best practices that will be delivered to customers through professional services.
  • The combined Compaq and Oracle Internet Procurement solutions will provide unmatched reliability, performance, and availability in customer offerings.
  • Compaq and Oracle intend to leverage Compaq's leadership in 64-bit, clustered Tru64 UNIX solutions to provide industry-leading Internet-based solutions.
  • Oracle's Internet Procurement will enable Compaq to acquire general and administrative goods and services at the lowest total cost.
  • Compaq's expectation is that customers who deploy Oracle Internet Procurement will receive the benefits of proven procurement solutions on one of the industry's most available and reliable platforms, tested and optimized onsite at Compaq and backed by experienced service professionals.

Statistics:

  • Purchased products and services account for up to 55 percent of revenue for most organizations (Aberdeen Group, "Strategic Procurement: The Next Wave of Procurement Automation," July 1999).
  • Compaq Computer Corporation has annual revenues of over $47 billion ( Fortune Global 100 listing for 1999).
  • Oracle Corporation has annual revenues of over $9.1 billion (Oracle Corporation's annual report 1999).
  • Compaq has more than 100 countries where its products are sold and supported through a network of authorized Compaq marketing partners.

Sources:

  • Aberdeen Group, "Strategic Procurement: The Next Wave of Procurement Automation," July 1999
  • Compaq Computer Corporation's press release announcing the partnership with Oracle Corporation
  • Oracle Corporation's annual report 1999
  • Fortune Global 100 listing for 1999

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