More On Compaq's Networking
Revamping-Inter@ctive Week
by: hlpinout
47589 of 47590
By Todd Spangler, Inter@ctive Week
December 28, 1998 9:43 AM ET
Compaq Computer Corp., which only two
months ago embarked on a
networking-focused marketing campaign,
will eliminate its networking division and
integrate the product lines within other units
starting in January.
Some observers interpreted the restructuring
as a retreat from the networking field by
Compaq (CPQ) , which bought its way into
the business through its acquisitions of Digital
Equipment Corp., Microcom Inc. and other
companies.
But John Ardini, vice president of
networking programs at Houston-based
Compaq, said the organizational changes
were made primarily to reflect the way
customers were buying networking products.
"I kind of see it as reacting to how customers
are going on the buying decision," Ardini
said. "Years ago, the networking decision
was separate from the IS decision. They're
getting closer together -- now, the people
worried about servers are worried about the
network connection."
Under the reorganization, Compaq's
network interface card and remote access
server product lines will move into the server
division. The modem business will become
part of the PC add-on division, and the
enterprise networking products will be
brought under the enterprise systems
division.
"We're taking a lot of the technology and
putting it closest to how it reaches the
customers," Ardini said. "What customers
can buy and what Compaq has to deliver to
customers remains the same."
Ardini added that by moving its networking
products into the computing divisions,
Compaq will be better able to compete with Hewlett-Packard Co. and
IBM, which have similarly wide-ranging product lines and enterprise
systems.
A Compaq spokesman said the company expects no significant layoffs
as a result of the restructuring, and there will be no management
changes. Ardini, who is in charge of monitoring Compaq's networking
products companywide, will continue to report to Bill Johnson, vice
president and general manager of the network and access
communications division. Johnson will continue to report to John Rose,
senior vice president of enterprise systems. |
