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Technology Stocks : Compaq

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To: Tom Markowski who wrote (59870)4/26/1999 12:03:00 PM
From: rudedog  Read Replies (1) of 97611
 
Tom -
I was basing my comments on a conversation with an executive from cpq services at innovate. he told me that break-fix represented less than 5% of services revenue and that virtually all of the break-fix was done through an organization that existed in the CPQ geographies prior to the merger. He said that most of the reselling of these services is either direct cpq people (but not people in the services organization) or subcontracted services through local service providers.

I think you are confusing "cpq branded services" with products from the CPQ services organization. This has been a little confusing to me also but here's what I got from my conversation:

CPQ provides break-fix support from its geo organization and from channel service partners. There are a total of about 30,000 people in this group, with something like 10,000 field service engineers and front line support people who are actually CPQ employees. None of these people are in the "CPQ service" organization run by John Rando.

Rando's team has 3 major areas. One is a traditional consulting practice much like EDS - systems design, business process re-engineering, etc. A second group does specialized development, again somewhat like EDS - this may include custom hardware and software development, integration services, and whatever else is needed to do a "turnkey" installation. The third is the specialized support needed by high-end VAX and Tandem Himalaya customers, which includes on-site people to provide 24x7x365 availability, capacity planning, and the other services required by this class of customer.

I hope this clears it up a little - I may have some of this wrong because the guy was talking pretty fast. But he was clear that traditional break-fix was in the cpq organization before the merger and was not moved to the services group, it is still where it was.
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