An IBD article. FC's Tier 1 SAN players battling it out in the market place. Hope they're all investing in the best technology available or someone's going to get creamed...
News Alert from Investors Business Daily via Quote.com
Topic: (NYSE:HWP) Hewlett Packard Co, (NASDAQ:SUNW) Sun Microsystems, (NYSE:CPQ) Compaq Computer Corp, (NYSE:DEC) Digital Equipment Corp, (NASDAQ:MSFT) Microsoft Corp,
Quote.com News Item #5379642
Headline: Computers & Technology DEC 'Partners' Fair Game For HP, Sun
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The best defense is a good offense.
So goes the thinking at Hewlett-Packard Co. and Sun Microsystems
Inc. Both companies are reacting to rival Compaq Computer Corp.'s
planned $9 billion buyout of Digital Equipment Corp.
DEC, Sun and HP compete in Unix systems. This standard operating
system dominates the market for high-end networks. Compaq has
focused on lowerend systems running Microsoft Corp.'s Windows NT
operating software.
Alert to the new challenge from Compaq, HP and Sun are eyeing
DEC's customers, distributors and employees. Most vulnerable are
DEC's customers who use Unix software. Some observers question
whether Compaq will continue to support DEC's Unix base.
Unix is Sun's core business. And the company will actively
recruit Digital engineers. "There's some really great Unix
development people at DEC. We're going to see if we can lure a few,"
said John Shoemaker, vice president and general manager of Sun's
Enterprise Server and Storage Group.
HP is concerned about the threat of Compaq as a rival soup-to-nuts
computer systems house. "This does present a serious challenge to HP
. . . . Of course, it's a concern to us," said Nick Earle, worldwide
marketing manager for HP's Enterprise Systems Group.
As such, HP has begun a number of poaching initiatives. The
company has posted on its Web site the following message addressed to
Digital's Unix customers:
"As a Unix professional, news of Compaq Computer's proposed buyout
of Digital may have first brought a sigh of relief. A financially
sound PC manufacturer has stepped in to rescue your chosen vendor for
Unix platforms. But, upon further reflection, you may become a bit
nervous about the potential ramifications of the merger . . . "
That's just the first volley from Palo Alto, Calif.based HP. HP
also has targeted Digital's customers with a new print media
advertising campaign. One ad reads: "Digital. Totally committed to
Unix. Until last week."
And HP has bought a list of DEC customers, who soon will receive
direct mailings from HP, Earle said.
The HP pitch will be to offer Digital computer users attractive
trade-in terms. "We're offering buybacks. We'll buy back (Digital
Vax and Alpha servers) as trade-ins for HP systems," said Earle. HP
will pay "extremely generous" prices, he said.
Many Unix systems are marketed through resellers. And HP has
Digital's resellers in its cross hairs. "We are definitely looking
at Digital resellers, Unix resellers," said Earle.
Unix resellers provide more value in the form of technical
expertise and software than, say, PC or NT systems resellers. Hence,
HP's interest in luring away Digital's Unix channel partners.
Compaq likely will support Digital's high-end Unix customers, says
Chris Christiansen, an analyst with Framingham, Mass.-based
International Data Corp. These, after all, are some of the large
commercial accounts that interested Compaq in the first place. But
Compaq likely will try to steer smaller Unix customers toward its NT
systems, says Christiansen.
Will HP and Sun be able to siphon off business from Compaq? "I
think it's going to be real tough," said Christiansen. "A lot of
customers are fairly happy with the acquisition."
HP's Earle says there have been no big defections yet. But he
hopes to have at least one major Digital trophy customer by the end
of the month. "We're hoping for an early win," said Earle. |
