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IBM-HP Rivalry Heats Up: Page 4 of 8

That battle helps customers.

At O.C. Tanner Co., a workplace services firm with IBM and HP servers, chief information officer Dave Berg said HP "bent over backwards" to keep IBM from making more inroads. HP let Berg try a server for free for six months before he finally decided to buy.

"I like the idea of having both of them captive, because in some ways, it keeps both of them honest," Berg said. "As long as they serve us well, what's the difference?"

Actually, both companies love to highlight their differences.

Armonk, N.Y.-based IBM, which generated $87 billion in revenue the last four quarters, is mainly focused on corporate and government markets, though it still makes consumer laptops. Meanwhile, Palo Alto, Calif.-based HP, which had $71 billion in revenue in the past year, also sells consumer printers, cameras, and home entertainment devices.