Intel Investors - With all the Bad News Today, Guess what Chips Compaq will use for its new Configure To Order (CTO) Line?
If you guessed AMD's K6-266 Mhz - you might be right!
Read on!
Paul
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infoworld.com
Compaq moves to simplify PC
configuration
By Dan Briody
InfoWorld Electric
Posted at 7:11 AM PT, Apr 6, 1998
Stung by recent criticism over its channel inventory glut, Compaq in May will take steps to remedy the situation when it unveils its configure-to-order distribution strategy, as well as a repositioning of its Deskpro line of commercial PCs.
As the second step of Compaq's three-phase Optimized Distribution Model (ODM), configure-to-order is designed to bring the PC giant one step closer to the direct model pioneered by companies such as Dell Computer. Dell's direct-model success has served as a catalyst in the industry, prompting several PC vendors to re-evaluate their distribution models.
Some IT managers are hopeful the new model works, but they too have their doubts.
"To me, configure-to-order has always meant that the regular offerings weren't diverse enough," said Eric Kuzmack, a senior IT analyst at an East Coast Fortune 250 publishing company. "If [a vendor] offers enough configurations, configure-to-order is irrelevant. For bulk orders it doesn't really matter, but it would be
great for smaller orders."
Compaq's ODM was launched last year when the company began selling
build-to-order systems. Phase three, channel configuration, is planned for later this year, according to company officials.
The move to configure-to-order (CTO) comes at a crucial juncture for Compaq, which currently is battling an inventory crisis that has caused the company to offer fire-sale prices and free monitor promotions to spur sales of older PCs. Some analysts wonder if CTO will bring more of the same.
"This should decrease inventory, but only if they implement it properly," said Roger Kay, an analyst at International Data Corp., in Framingham, Mass. "They never really implemented build-to-order, and I'm skeptical of their commitment to ODM."
The strategy will coincide with the folding of Compaq's Deskpro 2000, 4000, and 6000 lines into two new brand designations: the Deskpro EP and the Deskpro EN, according to sources.
The Deskpro EP line will be Compaq's mainstream value line, designed to hit aggressive price/performance marks. The Deskpro EN line will be geared for the enterprise, with stability and consistency in mind. It also will offer a variety of form factors, including the NetPC and small-form factor PCs, sources close to the company said.
The first systems to implement CTO will be in the Deskpro EP and EN lines, using the 350-MHz and 400-MHz Pentium II processors that Intel is expected to announce on April 15. [SURPRISE! Had you fooled, didn't I?] The systems will be built to user specifications with either clock-speed chip and hard drives ranging from 3GB to 9GB.
Other vendors expected to announce desktops, workstations, and servers based on the forthcoming 350-MHz and 400-MHz Pentium II processor include IBM, Hewlett-Packard, Dell, and NEC.
Compaq would not comment on unannounced products.
Compaq Computer Corp., in Houston, is at (800) 345-1518 or
compaq.com.
Dan Briody is a senior writer for InfoWorld and is at dan_briody@infoworld.com.
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