RealTime IT News

Compaq, Yahoo! Ink Technology, Marketing Pact

Personal computer and server manufacturer Compaq will provide technology to Yahoo! in return for a "substantial commitment" by Compaq to advertise on the Santa Clara, Calif.-based portal's properties.

Under the terms of the agreement, Compaq becomes Yahoo!'s preferred provider for servers, host-attached storage, desktops, laptops, PDAs and related professional services. Compaq also will provide the servers running Yahoo!'s most heavily-trafficked areas.

Financial terms of the agreement were not disclosed.

In addition to the bragging rights Compaq gets from this arrangement (the sites will indicate that they're "Powered by Compaq"), the Houston, Texas-based computer maker also has signed on as a client of Yahoo!'s Fusion Marketing program, which works to integrate offline brands with online marketing efforts.

"By choosing to work with Compaq, we are entering into a broad relationship that leverages the combined strengths of our leading brands to provide an optimal experience for users. Compaq's award-winning Internet infrastructure solutions will take Yahoo! to the next level in supporting our vast network," said Yahoo! chairman and chief executive officer Tim Koogle. "In addition, Compaq's deeply integrated Yahoo! Fusion Marketing program and Yahoo! Full Service data targeting and analysis will enable Compaq to connect in a meaningful way with Yahoo!'s global audience."

Few details were released about the two's joint marketing plan, but previous Yahoo! Fusion Marketing clients have included Pepsi Cola, which launched pepsi.yahoo.com and a PepsiStuff points redemption program with Yahoo!, and Subway Restaurants, which launched a similar incentive marketing effort. The deal stands as a sizable resume-builder for Yahoo!, which is seeking to boost ad revenue and prove that it can serve as a viable marketing platform.

Compaq's promotional program will include prime placement on Yahoo! Shopping's front page and shopping categories. The companies said they also would work to create other interactive marketing elements.

"This agreement teams two of the Internet's most powerful players," said Compaq chairman and CEO Michael Capellas. "We are very pleased that Yahoo! selected Compaq to help build and maintain its Internet infrastructure. ... This alliance with Yahoo, coupled with similar sized "powered by" agreements with other leading Internet properties, clearly indicates that Compaq is the technology vendor of choice for the most powerful and popular Web companies."

"In addition, the Yahoo! global network is a pervasive platform to market the Compaq brand and our industry-leading Internet technology and solutions -- from the most powerful servers to the coolest Internet access products like the iPAQ Pocket PC," Capellas said.