Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

US Army Enlists Storage

The United States Army has awarded procurement contracts for servers, storage, and software to four companies -- Dell Computer Corp. (Nasdaq: DELL), Hewlett-Packard Co. (NYSE: HPQ), GTSI Corp., and Lockheed Martin Corp. -- that could be worth as much as $500 million over three years (see HP Wins US Army Contract).

The U.S. Army Information Technology Enterprise Solutions (ITES), Functional Area 1 (FA-1), Enterprise Hardware Solutions (EHS) (ITES-FA1-EHS) procurement contract [ed. note: whew!] is part of an Army-wide initiative to consolidate and merge disparate systems into one, integrated architecture; and storage technologies are a large part of the equation.

The competitive contract was set in motion earlier this month and is initially set to last three years. There is also a possibility for two two-year extension periods.

Of course, the keyword here is "competitive": The Army offered the same procurement contract to each of the four companies, and it will have to get competitive quotes from at least three of the companies every time it decides to buy a piece of equipment.

The $500 million figure includes sales by all four companies. So while one company may make off with a load of loot, others could come out of the deal with only the minimum contract amount of $10,000.

  • 1