Better than a soap opera.
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HP and Compaq customers left out in the cold
By Scott Morrison in San Francisco
Published: March 11 2002 19:48 | Last Updated: March 11 2002 22:43
While Hewlett-Packard appears to have a fighting chance to win shareholder approval for its $23bn bid for Compaq Computer, there is less evidence the two companies have succeeded in selling their proposed merger to customers.
The latest indication of customer sentiment was provided by Merrill Lynch on Monday in a poll that found more HP and Compaq customers were against the deal than in favour of it.
HP and Compaq hotly contest suggestions that customers do not support the proposed merger and HP said its better-than-expected results over the past two quarters indicate customers were standing by the company.
Merrill's survey of 100 chief information officers in the US and Europe found that 25 per cent of Compaq customers backed the deal, while 46 per cent were against it and 29 per cent were neutral.
Among HP customers surveyed, 26 per cent were in favour of the deal, 42 per cent opposed it and 32 per cent were neutral.
Steven Milunovich, technology strategist at Merrill and a supporter of the deal, said his firm's survey suggested customers were underestimating the potential of the merger and overestimating how successful the companies would be as stand-alone corporations.
However, the Merrill survey is only one of several recent polls that reveal a negative customer bias towards the deal.
A recent survey from Ziff Davis, the technology publishing group, found that most customers were not supportive of the merger plan. The poll of more than 1,000 senior executives, CIOs and other IT professionals, also suggested the companies have not done an adequate job of explaining the merger to clients.
ComputerWorld, the trade magazine, conducted two parallel surveys that found less than 20 per cent were for the deal, about 27 per cent were against and about 54 per cent were neutral.
The results of these four surveys were contrasted by findings in two other customer polls. HP has touted a survey by Technology Business Research, and another conducted for Andersen, which found more users were in favour than against.
The common thread in almost all surveys was that customers appeared unsure of how the deal would affect them.
"The problem for users is that HP and Compaq have been so caught up in convincing financial analysts, that they have forgotten about customers," said one industry observer.
Others pointed out that HP and Compaq have been legally prevented from providing product line details until after the merger is approved by shareholders. However, HP said customers were excited about the company's ability to provide a broader range of products and services after the merger.
Interex, the largest group representing HP customers, has said its board was coming out in support of the deal, which has also been endorsed by one group representing users of Compaq's high-end computers. |
