Compaq Message Board - Msg: 3262388

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Technology Stocks : Compaq

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To: Steve Porter who wrote (15000)	1/26/1998 2:57:00 PM
From: StockMan	Read Replies (2) of 97611

Re -- but don't you think CPQ could establish the same thing on it's own if they threw 9.6b$ at it? It takes a lot of time (2 years) to set up a world wide service organization. CPQ with DEC is hoping for a quick way to have it. All of DEC's servers etc.. will be junked eventually in favor of the CPQ/TDM line (with Merced/NT). Also DEC's installed base gives CPQ a fast path entry into th enterprise. With this they can more easily work their own (TDM) machines into the enterprise. The acquistion makes sense strategically. However the logistics of integratation and other things will take a while to hash out. CPQ is going after the $50 billion with a gusto. Stockman

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