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Technology Stocks : Compaq

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To: Elwood P. Dowd who wrote (72221)11/18/1999 11:42:00 AM
From: John Koligman  Read Replies (1) of 97611
 
Also, another Dow Jones story on Capellas - Very similar to what IBM has been saying for some time.

Regards,
John

Dow Jones Newswires

Compaq CEO: Internet Trends Play To
Co.'s Strengths

By ANTHONY PALAZZO

LOS ANGELES -- Several broad trends in information technology
play into the strengths of Compaq Computer Corp. (CPQ),
President and Chief Executive Michael Capellas said Wednesday.

As more and more companies conduct transactions over the
Internet, and as technologies converge, customers will increasingly
demand traits such as interoperability, fault tolerance and the
flexibility to handle unpredictable loads, Capellas said. They must
also be scalable, and capable of being upgraded without taking the
entire system down, he said,

Compaq's Tandem Computing unit is a leader in fault-tolerant
computing, and Compaq also offers high performance with servers
powered by its Alpha chip, said Capellas, speaking at OpenWorld,
a developer conference sponsored by Oracle Corp. (ORCL). New
Alpha benchmarks, to be released in the next several weeks, "will
really rock," he said.

Compaq will also continue to add new, Internet-connected
information appliances to its product lineup, Capellas said. The
company just unveiled the iPac, a slimmed-down Internet computer
that will sell for $499.

He said 95% of the core technology that will drive e-commerce has
yet to be put in place. The Internet's expansion will change
companies' marketing strategies because "competition is only two
clicks away," Capellas said. Changes in distribution will also be a
challenge, he said.

Compaq is instituting Oracle's iProcurement technology to
streamline its purchasing operations. Capellas said, "We believe it
will have an effect on earnings-per-share numbers, driving increased
profitability."
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