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Technology Stocks : Compaq

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To: Elwood P. Dowd who wrote (58819)4/19/1999 7:12:00 PM
From: Elwood P. Dowd  Read Replies (1) of 97611
 
Compaq Services may get new sheen
By Kim Girard
Staff Writer, CNET News.com
April 19, 1999, 3:40 p.m. PT

news analysis Under a new leader, Compaq's services group could get a
needed boost as the company struggles with the legacy of Digital's
services division and troubles building its own coherent services brand.

In the wake of Eckhard Pfeiffer's ouster yesterday, analysts gave the former
Compaq chief executive low marks for putting Compaq's services division on
a more successful track. Some suggest the company should even spin-off the
services unit.

"Eckhard did a very good job moving Compaq out of the PC business and
positioning them to be a full computer supplier," said John Dunkle, president
of Workgroup Strategic, a Portsmouth, New Hampshire-based consultancy.

"What he failed at is playing anything that didn't touch on
hardware--including services, infrastructure for working with ISVs and those
things that it really takes to be successful," Dunkle added. "If you look at
[IBM's Lou] Gerstner, those were the things they did very well. Eckhard can't
stand on the same stage."

Compaq's services push hasn't been dynamic, even though the company
picked up an army of services employees when it acquired Digital
Equipment last year. Meanwhile, rivals IBM Global and Hewlett-Packard
continue to make waves in the market.

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