Compaq adopts accelerated solution strategy to build momentum in health care

Houston 27 March 2002Compaq Computer Corporation's strategy to solve industry-specific problems with differentiated solutions is driving increased momentum in the health care marketplace. Compaq outlined a heightened strategic focus on key vertical markets including health care in a memorandum from CEO Michael Capellas last June 2001. Executing the strategy, the company organised vertically and marshaled resources to focus on health care providers and managed care organisations.


The results can be seen in the rapidly growing new business Compaq is winning with health care customers, according to Jim Milton, senior vice president and North America general manager for Compaq. "Since September, Compaq and its partners in health care have closed sales in North America that will bring in more than $300 million in new business to Compaq over the next three to five years", Mr. Milton stated.

Compaq's physician mobility partnership with Allscripts Healthcare Solutions produced more than $20 million in new sales for Compaq during its first year. Also, the two companies announced significant enhancements to the partnership to accelerate marketing of their joint solutions and deliver a wider range of services options, including participation in Compaq's strategic Computing On Demand initiative.

Compaq has quietly built a leading presence in health care IT over many years by partnering with providers of clinical and hospital information systems including such market leaders as Cerner Corporation, Siemens Medical Solutions, IDX Systems, Meditech, and McKesson HBOC. For example, Compaq Global Services operates a laboratory in Nashua, New Haven, where IT professionals work closely with Cerner to ensure that the ISV's Cerner Millennium solutions integrate smoothly with Compaq technology platforms. Compaq technology experts work side by side with Cerner professionals to tailor and support solutions in each customer's unique operating environment.

San Diego-based Sharp HealthCare chose Compaq services and products to expand and update their information system infrastructure and user access devices, including additional server capacity for Sharp HealthCare's clinical information system, conversion of messaging and collaboration systems to Exchange 2000, data storage system enhancements, desktop computers, and wireless communications supporting mobile applications for physicians and other patient care professionals.

IT upgrades at Sharp include installation of StorageWorks consolidated disk systems and Storage Area Network (SAN) technology, and a network of industry standard ProLiant servers. Compaq NonStop Himalaya servers running the NonStop SQL database will be the foundation for Sharp's electronic medical record system. Sharp is working with IDX Systems Corporation to implement its LastWord clinical repository and physician order entry system on the fault-tolerant, massively scalable NonStop platform.

Also, Compaq AlphaServer Systems are enhancing Sharp's core IT systems, running with IDXtend, an integrated, enterprise-wide, Web-based business performance solution. Compaq also provides an array of technologies and services to teaching hospitals. Another example in this vital area of health care is the Medical College of Wisconsin, which is implementing a new AlphaServer SC and new services contract with Compaq Global Services. The Medical College of Wisconsin will use Compaq's technology and services to support research on analysing the rat genome sequence in concert with human and mouse genomes.

Virginia Commonwealth University's Medical College of Virginia Hospital (MCV) illustrates the potential impact of Compaq's industry standard building blocks on the practice of medicine itself. MCV has adopted an imaging storage and distribution system offered by Compaq Solutions Alliance member Imaging Archive International LLC (IAI), that allows simultaneous viewing of digital diagnostic images in multiple locations.

Based on industry-standard ProLiant servers, Compaq workstations, and StorageWorks technologies, IAI's solution is scalable to any need and affordable enough to place in remote clinics or even physician home offices, easing and speeding diagnostic reports and consultations without requiring transportation of film images or patients between locations.

Baptist Memorial Health Care Corporation in Memphis, Tennessee recently launched a $5 million effort to consolidate hospital and medical group information systems for greater efficiency and easier expansion. A new Compaq SAN-based enterprise storage network will allow Baptist to build out its IT infrastructure in phases to meet the rapid growth of data created by new imaging such as radiology systems and scanned medical systems. The IT effort at Baptist includes three TB of storage and over 64 servers, integrating a solution that includes industry standard ProLiant Windows 2000 servers, ProLiant Netware servers, OpenVMS AlphaServer GS systems, and StorageWorks Fibre Channel SAN and SAN-based tape libraries.

Cardinal Health, a global health care company based in Dublin, Ohio, chose Compaq as its exclusive provider of distributed IT equipment. Under a new contract announced late last year, Cardinal Health is adding ProLiant servers, desktop PCs, and Armada laptops to its well-established Compaq AlphaServer systems running Tru64 UNIX and StorageWorks storage products to the company's IT infrastructure. Compaq is replacing Dell, Hewlett-Packard, and IBM as providers of industry standard systems in various Cardinal divisions in a multi-year contract valued at more than $20 million per year.

Innovative and cost effective access products are important elements in meeting the complete IT requirements for health care providers. A recent $10 million agreement with Beverly Enterprises Inc. named Compaq the company's preferred IT personal computer vendor. The first project under this agreement involves the rollout of more than 8000 desktops systems to more than 475 Beverly locations across the United States.

An excellent example of Compaq's scalable systems capability is found in the large, state-of-the-art enterprise storage area network (SAN) Compaq is installing at Valley Baptist Health System in Harlingen, Texas. Based on two Enterprise Virtual Arrays, the SAN implementation includes a large tape library and uses Veritas Net-Backup software. The $1.2 million SAN at Valley Baptist Health System is being installed by Compaq Global Services.

Valley Baptist Health System relies on other key Compaq technologies to power its IT infrastructure, including Compaq NonStop Himalaya servers running clinical application software from IDX Systems Corporation. The health system also uses AlphaServer mission critical systems and industry standard ProLiant servers, as well as Evo desktops, workstations, and laptops and iPAQ handheld devices. According to Tom Watkins, VP and CIO at Valley Baptist, Compaq technologies will make up approximately 80 percent of Valley Baptist Health System's total IT infrastructure; the remaining 20 percent represents UNIX servers and printers from Hewlett-Packard.

Also, Compaq has launched a combination of new initiatives with partners and through direct and agent programmes to meet the rapidly changing IT needs of small and medium-size (SMB) health care customers. For example, Atlanta-based Phoenix Health Care Management Services Inc. uses Compaq products throughout its 250-employee organisation. Compaq technology for the health care concern includes desktops, portables, and the industry-standard ProLiant ML370 server. And The Living Bank, the oldest and largest non-profit donor education organisation in the United States, is deploying industry-standard Compaq ProLiant servers as the foundation for the first Internet-based organ donor registry.

Leslie Versweyveld

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