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To: TigerPaw who wrote (142558)	9/22/1999 11:54:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

TP = The move shows Compaq becomming a niche player in the computer business. I'm not sure I understand this - these products are in a market where DELL does not even have an offering. CPQ has products in every place that DELL does, and a lot of places where DELL does not. Yet no one is accusing DELL of being a "niche player". Let's keep a little reality in the discussion. CPQ, after acquiring both Tandem and DEC, had a product for everything including a lot of products where the customer base was suspect. They needed to greatly simplify their product line. They can do a whole lot more cutting and still have a broader offering than their competitors. BTW I think that the simplicity of DELL's product line is one of their strengths - and one of the places where CPQ could probably copy DELL to good advantage. Look at the MSFT HCT list - CPQ has about 10 times as many products as DELL. How is a customer supposed to figure that out? I think if anything, CPQ has not gone nearly far enough in consolidating products.

To: TigerPaw who wrote (142558)	9/23/1999 9:27:00 AM
From: TigerPaw	Read Replies (1) \| Respond to of 176387

reality I suppose it is an exageration to call Compaq a niche player - yet. Compaq says the move shows it's focusing sharply on the markets where it can stand out above its competitors, This is the trend that will lead them into becomming a specialty company. Of course not all trends last forever and I would expect them to take a firm stand around their core products. The volume products, PCs & NT Servers, are going to remain under a lot of pressure while the edge products will have an easier time in the market and in internal politics. I see this more like a repeat of IBM's experience where the de-emphasise the areas where they are getting challenged and concentrate on their special advantages. TP