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Resellers Back HP-Compaq Deal

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Reuters

Computer resellers, who account for the bulk of sales for Hewlett-Packard Co. and Compaq Computer Corp., have swung behind the controversial $25-billion merger between the companies, offering support crucial for the success of such an alliance.

These middlemen, collectively known as “the channel,” cobble together corporate computer systems from sophisticated technology and offer expertise without the bias that customers expect from hardware makers themselves.

These value-added resellers, who also are known as consultants or systems integrators, initially questioned the deal, which was announced Sept. 4.

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But now some 70% to 75% are comfortable with it, said Bicky Singh, chief executive of Future Computing Solutions, a reseller based in Yorba Linda with annual sales of around $85 million.

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