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Army enlists HP for tech overhaul

Hewlett-Packard has announced a contract worth up to $500 million to provide hardware, software and services to help the U.S. Army integrate its information systems.

Hewlett-Packard on Wednesday announced a contract worth up to $500 million to provide hardware, software and services to help the U.S. Army integrate its information systems.

The contract is for three years, with the possibility it could be extended for up to four more years, HP said.

The deal will let groups within the Army purchase commercial servers, workstations, desktops, notebooks, storage systems, networking equipment, operating systems, commercial software applications, peripherals, and related information-technology services, HP said. The IT services include installation, equipment maintenance, site survey, system configuration and integration, data migration, and asset tracking.

Products involved in the deal include HP ProLiant servers, HP and Compaq notebook and desktop computers, and HP printers and networked storage devices.

The new contract should help HP preserve its lead in disk storage systems. HP ranked first in disk storage system revenue in the second quarter, with $1.26 billion, according to research firm IDC. IBM was second, followed by EMC and Sun Microsystems.

HP ranked second in server sales behind IBM in the second quarter, according to IDC. Sun Microsystems ranked third and Dell fourth.