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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Salah Mohamed who wrote (62957)	6/13/1999 5:20:00 PM
From: Captain Jack	Read Replies (1) \| Respond to of 97611

<<" didn't have time to respond to this important event<GGGG>.">> About 2 - 3 weeks ago in FEDERAL COMPUTER WEEKLY there was an article about CPQ getting $43 mil govt contract (same article someone else recd a larger poirtion of same contract). I never saw anything about that anywhere else. Granted $43 mil is not huge but it is big enough for news I would think.

To: Salah Mohamed who wrote (62957)	6/14/1999 12:09:00 AM
From: E_K_S	Read Replies (2) \| Respond to of 97611

Hi Salah ... Thank you for your observation. You stated you did not have an answer as to "...why the head of the service organization (Rando) who has a very good reputation is resigning?..." I believe there was some prior discussion regarding Rando's resignation on this thread but it does not bode well for CPQ (short term) to see a change if he indeed was delivering the results you cited. The BOD (ie. Rosen) apparently did not agree with the results or vision for the service organization Rando was creating or he would not have resigned. I too am a bit concerned but a new CEO (like Ray Lane) may want to appoint his own team with a different vision. IMO the current Service Business model is not working and may require a significant restructuring and .....Rosen may see this too. I believe Ray Lane has built a more effective service model at Oracle. Oracle has continued to post large and growing consulting revenues as a percentage of total sales. In fact more money has been generated from consulting and software services than in licensed software (database) fees. I have diversified my CPQ holdings to include CSC (Computer Sciences) to take advantage of their growing computer Service Consulting business. CPQ would learn a lot from CSC's management. Another in the group with a similar successful service model is EDS. If CPQ is going to compete as both a box maker and integrator, they are going to have to significantly expand their current service model so they can compete (and win contracts) with the likes of CSC ($7 Billion in annual revenues), EDS and IBM. This is where the real money is going to be made going forward. EKS