After years of being an underachiever in the education market, Hewlett-Packard plans to announce Wednesday that it has won $100 million in deals in recent weeks.
The company is set to become a strong player in the education market. HP hasn't historically had a large slice of the elementary and secondary schools market.
The combined HP-Compaq saw double-digit growth in education sales last quarter compared with the sum of both companies' results in the prior year. Together, the two companies had about $1.6 billion in annual revenue from schools and universities prior to the merger. The new deals comprise more than 40 separate wins and range from wireless notebook deals to service contracts. In two-thirds of the deals, the company was in a competitive bid situation with rivals such as Dell and IBM.
HP is seeing an increasing number of school districts that are looking to outsource some of the tasks associated with maintaining their PCs, Milton said.
At least half of all schools are now outsourcing some part of their technology effort because of the costs associated with running and staffing IT departments, said Jeanne Hayes, president of Quality Education Data, a market research firm owned by Scholastic. ©
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