News Release

Compaq and Cisco Team to Provide IP Telephony Solutions for the Enterprise

Compaq to Deliver Full Life Cycle IP Telephony Services and Will Open Four AVVID-based IP Telephony Solution Centers Worldwide as Part of Strategic Alliance
Feb 12, 2001

HOUSTON and SAN JOSE - February 12, 2001 - Compaq Computer Corporation (NYSE: CPQ), a leading global provider of technology and solutions, and Cisco Systems, Inc. (NASDAQ: CSCO), the worldwide leader in networking for the Internet, today announced a strategic alliance to accelerate the adoption of integrated IP Telephony solutions that increase productivity, reduce costs and enhance communications for large enterprise customers.

Compaq will promote the Cisco AVVID (Architecture for Voice, Video and Integrated Data), which provides enterprises with pre-tested, integrated, open systems networked solutions. The alliance enables Cisco and Compaq to jointly work to ease a customer's transition from legacy PBX systems to the new AVVID-based IP Telephony solution. Compaq Global Services will provide full life cycle services for this technology to help customers migrate quickly and successfully to IP Telephony. The company also will offer a pilot implementation service where customers can test IP Telephony and expand the implementation of the technology at their own pace.

Cisco AVVID IP Telephony is the first initiative in a broad strategic alliance between Compaq and Cisco that builds on a long-standing enterprise technology and services partnership. Compaq and Cisco are also working towards joint programs and services in high-growth markets.

"Our customers are demanding a fully tested and supported IP Telephony solution capable of delivering a high level of reliability and availability," said James Richardson, senior vice-president, Enterprise Line of Business and Internet Communications Software Group at Cisco Systems. "Compaq Global Services is positioned to help these enterprise customers migrate from their legacy PBX systems to a converged voice and data network smoothly and rapidly."

Compaq is deploying the Cisco AVVID IP Telephony solution at two Compaq NA locations, as well as full installation at a Compaq UK site the first half of this year."Adopting this technology is indicative of Compaq and Cisco's shared vision of a business critical internet infrastructure. It benefits the customers with reduced capital expenditures, lower operational costs, and increased productivity," said Peter Blackmore, executive vice president, Sales and Services at Compaq.

Compaq Global Services Supplies Superior Technical Expertise

Compaq has achieved the top Cisco service certifications, Professional Services Subcontractor, Professional Services and Global Support Partner, enabling Compaq to resell, integrate and support Cisco products at the highest level worldwide.

As a leader in enterprise network high-availability business critical services, Compaq offers customers a proactive availability partnership that provides the level of support and responsiveness to keep IP Telephony solutions and the entire enterprise infrastructure running at all times.

To showcase telephony solutions to large enterprises, Compaq is opening four solutions/demo centers across the world later this quarter. Initial centers will be located in Houston, London, Budapest and Munich.

Media Convergence Servers Ensure High Availability

The core of the Cisco AVVID IP Telephony solution is the Media Convergence Server (MCS), which is Cisco's CallManager software bundled with a proven Compaq ProLiant server. Cisco has been using Compaq servers in the development and deployment of its IP Telephony solution since September 1999, shipping more than 11,000 MCS units to date. As the leader in industry standard servers, Compaq's ProLiant provides the reliability, scalability and availability necessary for critical enterprise communications solutions.

"Compaq's success in the enterprise business is not only evident by the strength of our technology and solutions, but by the company we keep," said Blackmore. "Teaming with Cisco demonstrates our ability to integrate innovative products into global solutions."

According to Richardson, "This agreement with Compaq allows us to combine our resources and areas of expertise into solutions and to create unprecedented value and opportunity for our customers and AVVID Partners, which will further drive the momentum of IP Telephony."

About Compaq

Compaq Computer Corporation, a Fortune Global 100 company, is a leading global provider of technology and solutions. Compaq designs, develops, manufactures, and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, and communications products, commercial desktop and portable products, and consumer PCs that are sold in more than 200 countries. Information on Compaq and its products and services is available at

Analyst and Customer Testimonials


"Voice over IP (VoIP) is the strategic direction for both the wide area network (WAN) and premise PBX equipment," states David Neil, Gartner vice president and research director. "VoIP is an important set of technologies which hold great promise for the future."

York Health Services Trust

York Health Services Trust (YHST), a leading hospital in the United Kingdom and a twenty-year customer of Compaq Global Services, realized the need to integrate their extensive voice, video and data networks into a single system for maximum performance, reliability and cost effectiveness. "We needed a robust and resilient solution to not only meet our current telephony and data needs, but one that is also 'future proofed' which would not limit our technical capabilities and offerings, " said Sue Rushbrook, Head of Systems and Network Services, York Health Services Trust.

Recently named Cisco Global Solution Partner of the Year 2000, Compaq UK is currently piloting the AVVID solution for the health service organization. Rushbrook explained that a primary benefit of the technology is that staff will now be able to transmit clinical imaging, patient records and electronic prescribing throughout the facility. YHST plans to roll out the AVVID solution across the hospital by September 2001.