Intuit Inc. (NASDAQ: INTU) and Compaq Computer Corporation (NYSE: CPQ) today announced a two-year agreement naming Compaq as the preferred technology provider for Intuit's information technology needs. The deal also includes a substantial commitment by Compaq to advertise on leading Intuit Web properties. In addition, Compaq will bundle select Quicken® products on its personal computers creating additional revenue for Intuit. The agreement is expected to result in revenue enhancement to both parties in aggregate of $60 million over two years.
Intuit, a S&P 500 and e-50 company, is the leader in providing financial management solutions to small businesses and consumers; Compaq, a Fortune Global 100 company, is a global provider of technology and solutions.
"Each element of this agreement is a win for both companies. Compaq met our needs while providing us with a significant cost savings and revenue generating opportunity for our business," said Ken Mudge, vice president of procurement for Intuit. "This demonstrates how a single, comprehensive agreement can meet a variety of needs - unifying technology, lowering costs, increasing revenues."
"Teaming with Intuit will enable Compaq to provide its technology solutions to potentially millions of new customers through advertising on Intuit's leading Web sites, as well as helping power Intuit's technology infrastructure," said Peter Blackmore, Compaq's executive vice president for sales and services. "The strength of Compaq's leading technology solutions, combined with the power of Intuit's brands, fully demonstrates why this partnership works for both companies."
Compaq will provide equipment, technology and services to Intuit, including ProLiant servers and personal computers. Over the next two years, Intuit plans to integrate Compaq's Tru64 platform into its technology infrastructure and move its data storage onto Compaq's StorageWorks. Intuit's current Windows-based server architecture will be standardized on Compaq ProLiant platforms. In addition, Compaq will power many of Intuit's most popular Web sites.
Compaq and Intuit have also entered into a wide-ranging advertising and co-marketing agreement that calls for Compaq to promote its brand, products and services across Intuit's leading Web sites. In addition, beginning in spring, Compaq will bundle the personal financial software, Quicken New User Edition, and the Quicken Financial Center onto Compaq's personal computers.
Quicken New User Edition is a free version of the Quicken personal finance software. The product is specifically designed for new users and does not import previous data files. The Quicken Financial Center was developed by Intuit to introduce computer users to the wide variety of financial products and services available through Intuit's popular Web sites such as Quicken.com. Users of the Quicken Financial Center can quickly link to Web sites related to their own financial interests, such as banking, shopping, taxes, retirement, and insurance.
In January, PC Data Online ranked Compaq as the number one Web site visited for computer hardware information and Intuit was among the top 10 software Web sites.
