Delta signs up HP and IBM for "Wired Workforce" scheme

Delta Air Lines has signed up HP and IBM to provide desktops and laptops respectively to its employees through its "Wired Workforce" programme; but leading analysts think the move will have a detrimental effect on rival Compaq.

Rob Hailstone, research director at Bloor Research said: "This will make things difficult for Compaq to get back the number one slot back from Dell in the US."

Andrew Brown, research analyst at IDC, agreed: "When figures are released for the first quarter, HP will have some very healthy numbers and it will be difficult for them [Compaq] to regain the top spot in the US."

HP is already providing up to 370,000 desktops in a similar contract with Ford Motors, and the Delta Airlines deal takes them to over 400,000.

Brown noted that the deals are so big that they would have a significant effect on market figures for the first two quarters of 2000. He explained, "HP's main competitors have had a slow first quarter and these two deals will certainly improve HP's position in the PC worldwide market."

HP will be providing Delta Air Lines and Ford Motors with machines from its Pavilion desktop range, while IBM will provide Delta with notebooks from its ThinkPad iSeries range.