>From the International Herald Tribune:
Lego moves to IBM HP loses deal to supply toymaker International Business Machines and Lego, the Danish toy company, announced Monday that Lego would replace virtually all of its Hewlett-Packard computer systems by the end of the year with hardware, software and services from IBM. The centerpiece of the deal, whose financial terms the companies would not disclose, is an arrangement that allows for Lego to pay IBM based on the amount of computing power it is using. Lego's costs will swell during the autumn, when it is shipping its colorful building blocks and other toys to retailers for the Christmas season, for example, but will fall sharply when its information-processing needs drop off. Lego, which is based in Billund, Denmark, is regarded as an information technology leader in the toy industry, said Brad Day, a computing infrastructure analyst with Forrester Research. Day said Lego was undoubtedly able to command deep discounts from IBM in return for turning its back on HP. Hal Yarbrough, Lego's chief technology officer, said the deal would cut the company's computing costs by at least 30 percent.(NYT) -- db David Boyes Sine Nomine Associates
