Thanks NW,
Having previously held Compaq way too long and at a much higher price, I at least have learned not to jump in too early with The Beast CPQ.
I've spent several years posting what should have produced great results but for some reason Compaq has IMO poor implementation, even when E.P. fell. DEC Tandem seemed to be the start but perhaps happening before. Compaq reinvented itself and trying again but focus and poop or get off the pot seems to be lacking.
This is not to say Compaq is not a good company but with the people,the technology, the initiative, the ability, the incentive, what the heck is missing that can't seem to tie the elements together. Hint:Leadership.
Let's hope the leaner lighter Compaq can reinvent itself again.
hio
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Perfect Storm of Opportunity On Horizon, Says Compaq Executive
Winkler says Windows XP, Y2K replacements and Windows 2000 to jumpstart sales
By T.C. Doyle, VARBusiness
12:37 AM EST Wed., June 27, 2001
Despite sluggish sales and widespread upheaval, the computer industry could be poised for a significant rebound, says one top, Compaq executive.
In a far-ranging interview this week at the PC Expo trade show in New York, Michael Winkler, Compaq's executive vice president of global business units, says three distinct selling opportunities are emerging. Together, they could significantly alter the economic climate that has griped the industry since last winter. The three occurrences, according to Winkler, Compaq's top executive for everything from products to corporate marketing to distribution supply chains, are increased customer interest in the Windows 2000 software platform, the pending release of the consumer version of Windows XP, and the need to replace hardware systems purchased in advance of the much-anticipated Y2K problem. Those three, somewhat inter-related opportunities could create "the perfect storm" needed to lift the industry out of the doldrums, Winkler says.
On hand in New York to introduce the Compaq ProLiant DL380 and ML370 servers, the latest in Compaq's line of data center solutions, Winkler shared those and other thoughts in an interview with VARBusiness. Among other things, Winkler defended and explained Compaq's decision to drop Alpha processors from its line of high-performance systems, and Compaq's more recent attempt to increase the amount of sales it generates from service sales. When asked specifically if he thought the industry had bottomed out, Winkler declined to speculate. Furthermore, he also refused to be pinned down to the specific quarter in which he thought the economic climate for buying PCs and servers would improve. He did, however, share his views that the perfect storm of opportunity is nonetheless approaching.
"The release of Windows XP will be another consumer phenomenon," he says. "Furthermore, continued interest in Windows 2000 is building. Coupled with the need to eventually replace systems bought in advance of Y2K, you could have the healthiest sales climate in recent memory."
Between now and then, however, Compaq has much work to do. On the product front, that includes phasing out the always-promising but never successful Alpha microprocessors. Technically, he says the task will be relatively easy. But, he concedes, additional public relations work needs to be completed.
"You could argue that it was a marketing failure," he says of Alpha's inability to capture the industry's imagination. In hindsight, however, it was actually a matter of pure economics, he says. Alpha, he now recognizes, would never have generated the volumes required to justify further investment in the alternative microprocessor platform. Only Intel, and perhaps IBM, could generate those kind of volumes in advanced servers, he says. And only Intel is where Compaq has decided to place its investments, much like Hewlett-Packard did before it and Sun Microsystems probably will one day in the future, Winkler says.
On the services front, Winkler insists Compaq is serious when it says that it wants to generate 30 percent of its business through services. The only way to achieve that, he adds, is through acquisitions, though he concedes Compaq's most recent attempt to expand its service business through acquisition created quite a bit of confusion within the market. Rather than fight a corporate battle for Proxicom, Compaq chose to allow a much smaller company, Dimension Data, to move in after Compaq made an offer for the Web solutions company. Yes, Compaq did appear to be less than serious, Winkler notes. But, he insists, Compaq simply refused to pay more for a company that it thought it was worth. Besides, he says, "we felt the Street would kill us if they thought we paid too much."
That said, Winkler says Compaq is truly serious about acquiring additional service providers, especially those that have skills in vertical markets where it thinks it can generate some market gains. These areas include: financial services, telecommunications, e-government, retail, health care, life sciences and media and entertainment. |
