I don't think this one's been posted:
ITxpo/ Capellas outlines Compaq roadmap
SOURCE: Network World
DATE: Friday, November 12, 1999
Network World via NewsEdge Corporation : Compaq's CEO Michael Capellas reiterated that his company's strategy has shifted towards electronic business and pointed to some expected product announcements in the next few months.
During an interview with analysts at Gartner Group's European Symposium/ITxpo '99, Capellas also discussed how the PC business is transforming itself and how his company - the world's largest PC supplier - will serve large corporate customers in the future.
Rather than setting a financial goal for his company in the next three years, Capellas summed up his mission as this: "When people think 'I need to enable my business for e-commerce and the Internet,' they will think: ask Compaq first." Capellas said that Compaq's job is to redefine what a PC is, as the form changes radically in the next year and a half.
Compaq's strategic advantage in the PC business will come from predicting the changing form of PCs, Capellas said.
"The world of personal computing is going through a huge transformation in the next year to year and a half. We want to remake the world," Capellas said. For example, Compaq in the next three to nine months will launch new, simpler desktop clients. These machines will retain some intelligence on them, but more of the applications will run on the server.
In terms of its large corporate customers, Capellas reiterated Compaq's support for three of its systems - the Alpha and Himalaya server lines as well as the company's Open VMS systems. Fault-tolerant systems will be increasingly important as companies need back-end support for e-business applications that can not go down - ever, Capellas said. "We see Himalaya making a huge resurgence," he added.
In the near future, Compaq will also announce some deals for application server provider services (ASP), although it will be in partnership with application companies and telecom carriers. "The powerful ASPs of the future will be the application companies," Capellas said. He dismissed Compaq as a potential ASP on its own. "We have no desire to be an ASP. That is not in our core competency."
Compaq's fortunes overall may have begun a turn-around with the most recent third-quarter earnings, reported last month, Capellas said. Following a series of cost-cutting measures and reorganization of its distribution channels in the U.S., Compaq beat Wall Street expectations, posting net income of $140 million, or 8 cents per share, for its third quarter ended Sept. 30.
At the same time, however, Compaq's PC business is facing increasing competition from its archrival Dell. Dell dislodged Compaq from its No. 1 position in the U.S. computer market in the third quarter according to two reports issued last month by International Data Corp. and Gartner's Dataquest.
Dell increased its share of U.S. shipments to 17.1%, beating Compaq, which had 15.3%, according to Dataquest. Compaq, however, retained its position as unit sales leader worldwide. |
