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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