From today's WSJ front page. In addition to his comments about Alpha, internet sales, and services, EP said CPQ will remain the number one PC vendor....
Compaq's CEO Says Digital Purchase
Doesn't Conflict With Standards Push
By CHRISTOPHER GRIMES
Dow Jones Newswires
NEW YORK -- Compaq Computer Corp. Chief Executive Eckhard
Pfeiffer said his plan to continue Digital Equipment Corp.'s old software
and hardware operations doesn't conflict with his company's larger
strategy of pushing industry standards into the corporate computing
market.
Compaq inherited many of Digital's
proprietary systems, like Digital's own brand
of the Unix operating system and its Alpha
microprocessor, in last week's acquisition. But
large corporate computers are widely seen moving to a standard based on
Microsoft Corp.'s Windows NT software and away from different flavors
of software and hardware.
Compaq will be able to use Digital's systems to help corporations move
more smoothly toward these "open standards," Mr. Pfeiffer said in a
keynote speech at PC Expo, which opened here Tuesday.
While his speech echoed many of the themes he hit on last week in
conjunction with the closing of the Digital deal, Mr. Pfeiffer addressed
some of the concerns expressed by analysts in recent days about the
merger.
He said it is popularly believed that Compaq bought Digital only for its
large services business, which will bring its installation and support staff to
around 25,000. He countered that while Digital's services business was a
"significant" factor, it wasn't the only reason for the acquisition.
Pfeiffer also surprised some audience members with his claim that Compaq
is averaging $6 million a day in Internet sales, adding that "that is more
than" Dell Computer Corp. Unlike Dell, which sells about $5 million a day
on-line through its own Web site, Compaq sells its computers through a
variety of different Web sites.
Mr. Pfeiffer highlighted a few new programs aimed at streamlining
Compaq's sales and distribution system, which are aimed at matching the
efficiencies of Dell's direct-sales model. He said Compaq intends to have
4,000 kiosks in retail stores by the end of 1998 that will allow customers
to configure their personal computers the way they want them.
While he focused his speech on the high-end needs of big businesses, Mr.
Pfeiffer said the company won't stray from its original operation -- PCs.
"We are determined to retain our position as the number-one PC company
in the world," he said.
He commented on Monday's announcement that Compaq had taken a
10% stake in the Road Runner service of Time Warner Inc. and
MediaOne Group Inc., adding that high-speed cable modems will be
integrated into all Compaq PCs by the end of 1999.
And he said Compaq's PCs will eventually have direct links to AltaVista,
the search engine developed by Digital. His goal for AltaVista is to make it
"one of the most popular sites on the Web."
John |
