Its enterprise business unit director Kuan Chee Kok said: "In this economic climate, there is a general freeze on spending but in business critical areas, enterprises will continue to spend."
He was speaking to reporters on at the company's Nonstop Systems Roadmap on Friday. The event was held to update Compaq's local customers on Compaq's Intel Itanium Strategy, which will see Compaq and Itanium maker Intel, engaged in a collaborative technology and marketing venture.
The roadmap event was also an opportunity for the IT vendor to highlight it's Zero Latency Enterprise (ZLE) strategy.
Kuan admitted that the pie had shrunk but added that consequently, competition had also been reduced.
He cited the closure of Gateway Computers in Malaysia as an example of reduced competition in the desktop arena.
He also said IT spending by enterprises has become more focused, with the prime intent now among clients to get strong return on investments (ROI).
Asked where revenues would come from in this economic climate, Kuan said Compaq was looking at making sales in the telco and financial sectors from its enterprise solutions and services.
Desktop sales are also high on Compaq's list with revenue coming from increased government spending especially in the educational sector.