Hello All,
Compaq must be the epitome of Murphy's Law.
I just wanted to post some recent items to help indicate some direction and efforts being made. I haven't kept up on all of the posts so there may be some repeats.
Good Luck,
hio
--
Compaq's Larry Schwartz (Transcript of Interview)
12/6/00 12:08:00 PM
Source: Bloomberg News
****THE FOLLOWING IS AN UNOFFICIAL TRANSCRIPT.****
BLOOMBERG L.P. DOES NOT GUARANTEE THE ACCURACY OF
THIS TRANSCRIPT.
Hong Kong, Dec. 6 (Bloomberg) -- The following is a transcript of a
Bloomberg interview with Larry Schwartz, telecom division general
manager at Compaq Computer Corp. The reporter is Tyrone Marega.
MAREGA: Compaq Computer says revenue from technology services
in Asia will grow at more than 20 percent annually for the next three
years. To tell us more, we're joined by Compaq's Larry Schwartz.
Thanks for joining us, Larry. Firstly, where is Compaq's growth in
expansion in telecommunications focused?
SCHWARTZ: Well, I think the source of growth for Compaq in
telecommunications is really based on the convergence that's going
on now between the traditional telecommunications and IT. When you
look at markets like 3G and industries like 3G that are expanding,
almost half the spending on 3G infrastructure will be IT. Looking at
Compaq's growth, I think Compaq really brings together a lot of
capabilities for the new IT for these next-generation networks, including the network appliances that
are really computer's access to the wireless Internet; the data center infrastructure--Compaq today
manages--Twenty-five percent of the world's web sites are hosted on Compaq servers; the telecom
infrastructure--the next-generation telecom infrastructure, to a large degree, is based on Compaq
technology, whether it be intelligent networking, network management or the core infrastructure for
the next- generation networks; and then, finally, when you look at what's happening with the mobile
Internet as it moves from information access to commerce, Compaq brings its tremendous strengths
from the financial industry to bear in really bringing the secure financial capabilities that we learned
and finally bringing it onto the world of communications.
MAREGA: Okay. Will Compaq's business in Asia be able to offset the impact on its revenue from the
slowdown in the U.S. economy?
SCHWARTZ: Well, certainly the growth of the business in China is just absolutely outstanding for
Compaq. Our business growth in China alone in PCs is expected to grow over 66 percent this year.
And I think the thing that people need to be reminded of sometimes is that Compaq is a very
diversified company. A lot of people think of Compaq, the PC company, but consumer PCs only
represent 19 percent of Compaq's total revenue, and almost half of Compaq's total business is
outside the United States. So I think we have a very balanced overall business and I think we can do
a lot to overcome shortfalls in any individual region over a short period of time. The long-term outlook
for our business continues to be very, very positive.
MAREGA: Okay. And can you tell me a bit more about the potential of the wireless technology,
particularly in China, taking Compaq beyond its traditional PC business?
SCHWARTZ: Oh, sure. The business growth in China in wireless is almost mind numbing when you
think of it. The number of subscribers being added every year in the China marketplace is measured
in the tens of millions of subscribers. I'm originally from Canada, and it would be like putting the entire
Canadian wireless network in every nine months in China. So the potential there is huge. Compaq, I
think, brings a couple of core competencies that are very attractive in dealing with the China
marketplace. One is we have extremely scalable servers that can deal with the millions and millions
of subscribers. We've announced earlier this year major OEM agreements with major suppliers in
China, like Motorola and Alcatel, and earlier today we had a major announcement with the local
telecom equipment manufacturer, Datang, to cooperate where they bring their local switching
expertise and combine it with Compaq's experience and capabilities in wireless intelligent
networking. So, the market in wireless is exploding in China. That means good news for Compaq.
MAREGA: Okay. Larry, thanks very much. That was Larry Schwartz of Compaq Computer in Hong
Kong.
***END OF TRANSCRIPT***
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