Compaq has announced the iPaq, (an iMac lookalike) in its quest for making simpler, Internet-ready PCs. The iPaq is positioned as an Internet device for corporate computing that also supports mainstream personal productivity applications.

The iPaq weighs a little over 10 pounds and takes up 75 percent less space than the typical desktop PC and features an Internet keyboard for instant Internet access. Its other features include:

• No ISA/PCI slots
• Hot swapping MultiBay devices: CD ROM, DVD, LS-120, or second hard drive (all compatible with Armada portables)
• Small footprint
• Intel Pentium III 500 CuMine™ processor or Intel Celeron™ 500 processor
• Intelligent management and deployment tools to manage client changes, updates, patches, service packs and more
• Fully programmable Internet keyboard
• Preinstalled Microsoft Windows 2000, Win NT, 98 or 95 operating system

The prices start at $499 and the iPaq ships with either a Pentium III 500-MHz processor or a Celeron 500-MHz processor, and is Windows 2000-ready.

Compaq will be selling the iPaq through an inventory-less model, whereby Compaq will take orders from the Web, by phone, or through resellers. In the case of reseller buying, Compaq will take the order from the reseller and ship directly to the customer, using an agency model.

The company said it expects to ship in volume in mid-January.

Compaq also unveiled plans for an "Internet destination" for the business-to-employee market, which will provide supporting services and content offered by American Express, CMGI, Microsoft, and Siebel.

Compaq also plans to launch the Web destination in the first quarter of next year. This will enable users to use a single site to fulfill their personal and business needs. Other web related plans include several vertical communities for the IT community, procurement, financing, and human resources areas and will contain tools and information, web seminars, discussion forums, and personal content, including travel and sports information.

These offerings are just the start of Compaq''s plans in the Internet device area.