Dell and HP/Compaq Rated `Best' IT Equipment Brands Globally - First ACNielsen / VNU Global Tech Forum Survey Also Reveals:

Business Wire, May 15, 2006

LONDON and NEW YORK -- ACNielsen:

--Over 50% of companies in USA and Europe set to increase IT spend this year

--Two in five companies in USA and Europe set to increase spending on Notebook computers

--Use/adoption of Blackberry expected to jump 21 percent in UK this year

--Future Investment for internet-related services higher in USA than Europe as savvy US companies demand higher ROI (return-on-investment).

Despite a lower than expected quarterly earnings forecast from Dell last week, IT executives in the USA voted DELL the IT equipment brand, believing the home grown all-American Dell still delivers better value for money more than any other IT equipment brand, according to findings from an ACNielsen / VNU Global Tech Forum Survey released today. Across the Atlantic, European IT leaders voted HP/Compaq the leading IT equipment brand, with Dell taking second place.

"One in three IT executives in the USA and one in five IT executives in Europe have chosen Dell as their leading IT equipment brand. However, HP/Compaq - with its international image and global presence clearly holds poll position in Europe, despite Dell catching up quickly in second place in France, UK and Germany," said Frank Martell, CEO and President ACNielsen Europe.

"The US is ultimately a value-driven society and Dell's unique brand values around its 'no corporate overhead' and delivering its IT solutions directly to the customer greatly appeal to US corporations".

Europeans on the other hand, appreciate heritage in an IT brand - as well as an international reputation and a global presence. "Most senior IT executives in Europe started their careers exposed primarily to Hewlett Packard and IBM and have developed long standing trust and association with these two brands. HP/Compaq is also perceived as the all-end solution provider, an important consideration for European corporations," said Martell. It's paramount for IT companies to know and understand what brand values appeal most to customers in different global regions - these key factors will influence purchasing decisions," said Martell.

In the first IT Brands survey of its kind, senior IT executives rated leading IT companies on their brand values and a variety of factors that influence purchasing decision.

"Every IT equipment company in the world sells a similar range of products - but they use their core brand to differentiate themselves and command a premium in this highly competitive industry," said Martell.

Its certainly an interesting scenario to watch. The race between Dell, the world's largest PC maker and HP/Compaq intensified last week as Dell lowered its quarterly forecast earnings amid news that is losing US market share. Meanwhile, in the last twelve months HP/Compaq has gained market share both in the USA and globally. "We can expect both Dell and HP/Compaq to place greater emphasis on their core brand values in their forthcoming marketing and advertising campaigns," predicts Martell.

"Our survey tells us that when companies buy Dell, they are buying into the brand's core values of value-for-money and outstanding customer service. When they buy HP, they are buying into its global reputation and its track record for reliability - and when they buy IBM, they believe they are buying a highly reputable, top quality brand and are willing to pay the price for it."

The ACNielsen IT Growth and Brand Positioning Study - a survey conducted among 1680 senior IT decision-makers in US and European companies identified two common attributes that are equally valued by US and European IT leaders. Firstly, the expectation that an IT equipment partner should be a one-stop-shop for their IT needs and secondly, that they should offer outstanding service/support. "There the differences stop, however," pointed out Martell. "European companies place great value on reliability and high quality, while US companies value an IT brand that is fast growing, improving and offers high security features."

"To maintain their leadership position and safeguard their future in Europe, HP/Compaq needs to maximize its current leading position among the next generation of IT leaders. Dell currently has the second highest brand equity in all European countries except Germany, so HP/Compaq needs to recognize its perceived value deficit and work at capitalizing on the brand values that are winning them favour with today's leaders - heritage, trust and familiarity. Selling these brand values to the next generation of IT leaders is the only way that HP/Compaq will maintain its leadership position in Europe," noted Martell.

And never underestimate the power of local brands either. In Germany, while HP/Compaq takes poll position, leading local brand Fujitsu-Siemens takes second place, followed by Dell.

US and Europe IT Expenditure

More than 50 percent of US and European companies expect their IT expenditure to increase this year - mainly in the areas of Notebook computers and Internet-related services - while one in three companies say their IT spend will remain about the same.