GTE, HEWLETT-PACKARD SIGN $100 MILLION STRATEGIC AGREEMENT.
IRVING, Texas, March 3 /PRNewswire/ -- GTE Telephone Operations and Hewlett-Packard Co. (HP) today announced an innovative, three-year strategic agreement expected to accrue benefits worth millions of dollars for both companies.
HP is expected to provide GTE approximately $100 million in computer products and services, a portion of which GTE will resell through its distribution arm, GTE Supply. This includes an estimated $40 million that GTE will spend during 1992 for HP Apollo workstations to be used by telephone customer-service representatives, which HP announced last year.
The orders will include computer systems, related software, support and peripheral products, with GTE Supply marketing HP products to computer resellers and value-added resellers (VARs). HP also becomes one of GTE's strategic suppliers of client/server computing systems.
The agreement is the first of its kind for the companies, which consider it to be highly innovative because it is based on them sharing information about future plans and goals. The companies believe that the information-sharing arrangement has the potential to generate revenue growth and major savings.
"This agreement is like none other for GTE or HP," said Donald E. Peeples, vice president-information technology for GTE Telephone Operations, the largest U.S.-based, local telephone company. "By streamlining forecasting, procurement, manufacturing and deployment processes between the two companies, joint savings opportunities will amount to millions of dollars."
Improving Client/Server Computing
Peeples said HP was chosen because it has both the technology and national support to provide installation, training and maintenance. Another key factor is HP's experience and leadership in client/server computing. GTE will work closely with HP to spearhead its move to client/server-based architecture.
Computer applications used in GTE's customer-service centers will allow users to take advantage of HP's client/server architecture to quickly retrieve, update and store information. This architecture, coupled with GTE's INCIRCLE software technology, will allow faster development of new applications that previously were tied to mainframe- imbedded software.
"We believe employees will like HP's products and services, and our customers will find it easier to do business with us because of this new architecture," Peeples said. "And, our company will benefit from the overall savings because we've found a more efficient way to do business."
"The investment GTE is making in HP's open, client/server-based computing systems will deliver immediate benefits in greater customer responsiveness and productivity, and continue to pay off for many years to come," said Lewis E. Platt, HP executive vice president responsible, Computer Systems Organization.
GTE Telephone Operations provides local phone service through more than 20 million access lines in portions of 40 states, British Columbia, Quebec, Venezuela and the Dominican Republic. It also markets telecommunications products and services, and supplies computer software and data processing. GTE is a worldwide leader in telecommunications, with combined revenues and sales in 1991 of $19.6 billion and net income of $1.6 billion.
Hewlett-Packard Company is the third-largest computer supplier in the United States, with computer revenues in excess of $10 billion in its 1991 fiscal year. HP is an international manufacturer of measurement and computation products and systems recognized for excellence in quality and support. The company's products and services are used in industry, business, engineering, science, medicine and education in approximately 100 countries.
HP has 89,000 employees and had total revenues of $14.5 billion in its 1991 fiscal year.
/CONTACT: Mike Flanagan of GTE, 214-718-4952, or after 6 p.m., 817-282-7774; Jill Kramer of Hewlett-Packard, 408-447-4275; Or in Washington D.C., Julia Spicer, 202-463-5206/
(GTE HWP) CO: GTE Telephone Operations; Hewlett-Packard Co. ST: Texas, California IN: CPR SU: SM -- NY077 -- 4618 03/03/92 16:14 EST