THREAD --- THE LATEST---Pfeiffer: Compaq Will Lead Win NT, Internet
(06/11/98; 8:23 p.m. ET)
By Joe Wilcox, Computer Reseller News
Compaq celebrated late Thursday afternoon the conclusion of its merger with Digital Equipment.
"This is a very important day for Compaq ... also [for] our employees, Compaq as well as Digital," Compaq CEO Eckhard Pfeiffer told financial analysts during a conference call. "It's truly an exciting time for us and really an historic moment ... a redefining moment for Compaq as well as the industry."
Pfeiffer outlined four priorities for the new company: the drive for industry standard computing; the synergy between Compaq (company profile), Digital (companyprofile), and Tandem (company profile); leadership in delivering products and services; and strengthening its relationships with customers.
Two important areas going forward will be Windows NT and the Internet, Pfeiffer said. "Windows NT continues to mature higher and higher into the enterprise," he said.
Compaq's CEO also emphasized the new company will aggressively push e-commerce, both as a facility to aid resellers and as a means of reaching customers. "If customers want to buy over the Internet, so be it," Pfeiffer said.
He also touted the importance of Digital's Alta Vista search engine, and Digital and Tandem networking research labs and their role driving Windows NT-based Internet solutions.
Pfeiffer stressed the importance of being a "global leader in NT services and integration." He pointed out the strong clustering solutions from both Tandem and Digital would be vital element of Compaq's ability to deliver NT solutions and services.
However, the Digital brand will eventually disappear. In the short term, Compaq will continue the brand names associated with existing products, but "as the roadmap comes together, first likely in the PC arena, [the Digital brand] will be replaced with one common product under the Compaq brand. Other products with a longer life cycle will carry the Digital or Tandem brand as long as feasible," Pfeiffer said.
He said Compaq would push a standardization of services mail, messaging, Windows NT, and the Internet. Overall, Compaq plans to double its service organization of 25,000 by the year 2000.
Pfeiffer said he was not concerned about reseller conflict over services because of the recently concluded rules of engagement. "We will leverage our channel partnership, [which] we feel is stronger than it's been in years," Pfeiffer said.
Sales and marketing will take on a more significant role as Compaq leverages "its brand awareness and team of more than 10,000 sales and marketing officials," Pfeiffer said. In the enterprise, Compaq would pursue "strategic partnerships at the CIO and CEO level," he said.
To kick off this drive, Compaq Friday will launch a new advertising campaign built around the letter "Q" in the name Compaq. Ads will appear in The Wall Street Journal and other major publications.
Compaq's CEO said Alpha would play a vital role in Compaq's NT thrust, describing Digital's 64-bit platform as two years ahead of Merced. He also said, there is no uncertainty about the future of Alpha, and the fabrication agreement with Intel gives Alpha a "favorable cost structure."
He emphasized Compaq's commitment to Alpha and said Compaq would continue R&D for future versions of the processor. He also stressed the importance of this week's agreement with Samsung Electronics, and a pending agreement with chip maker Advanced Micro Devices. "There is a real opportunity to grow this business," he said.
Pfeiffer said the new company would merge the Compaq and Digital PC lines, and the combined companies shipped 11.5 million computer systems in 1997 -- 4 million more than IBM.
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