Doug -
Isn't it so that CPQ and HP are situated with Linux and Unix variants such that if Linux based handhelds become the best alternative method of accessing enterprise ASPs that they will have little difficulty responding to the need?
Both companies have all of the capability to do whatever they need to do with any Unix variant - they both have engineers who create a full-fledged Unix from the ground up. CPQ has been a little more ready to do "whatever it takes" to get the best OS for their products - one only needs to look at their volume server business, which is fairly evenly divided between NT, Netware and SCO Unix, to see how that has paid off for them.
HP might be a little better positioned to actually create the devices, and the appointment of Carly as CEO is a strong statement that HP intends to pursue "new thinking" about products.
But CPQ has a much more successful history of re-inventing itself and being nimble, they have done it about every 3 or 4 years since the company was founded. They started the company as a "fast follower" IBM clone company in 1982. In 1986 they broke that mold and went into the leadership engineering position in the PC space by bringing out a 386 PC, and an operating system which could use it, Windows 386, which they co-developed with MSFT. Then in 1989 they created the PC server with the SystemPro and became a major force in corporate IT. In 1991, of course, they replaced the whole of the top management structure and went for the volume PC market. In 1994, they created the "consumer PC" category. Each of these produced a huge revenue stream, created category and market leadership for CPQ, and incidentally big benefits for shareholders.
The big acquisitions of 1997 were the next re-invention, and the first one which misfired. The general idea was right, but the top management just did not have what it took to pull it off. Now the shift is to the "new connectivity model" and new functionality made possible by the internet, and my sense is that CPQ has gotten back in gear and will regain its ability to adjust to the market and re-create itself once again as a leader. |
