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iPaq to feature wireless server software

Compaq Computer will begin selling wireless server software with its iPaq handhelds as it continues its push into the corporate market.

Compaq Computer will begin selling wireless server software with its iPaq handhelds as the company continues its push into the corporate market.

Compaq will resell Extended Systems' XtndConnect Server, which essentially allows corporations to transmit data, such as e-mail and databases, between their servers and wireless handheld devices.

On Friday, Extended Systems confirmed the deal, which it plans to officially announce on Monday.

Earlier this year, Palm had planned to acquire Extended Systems. But amid a plunge in revenue, the handheld giant announced in May that the two companies had mutually agreed to exit the deal.

Palm's operating system competes with Microsoft's Pocket PC OS, which Compaq licenses for its handhelds.

Compaq will pay a licensing fee to Extended Systems for each iPaq sold with Extended Systems' software bundle. The companies would not disclose the length or financial terms of the deal.

Extended Systems announced a similar agreement with Palm in June.

At the center of these deals are corporate customers, which are being pursued aggressively by companies developing handheld products.

Microsoft has been aggressively targeting large companies by adding corporate-friendly features to its new Pocket PC 2002.