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

To: hlpinout who wrote (90981)	4/29/2001 10:07:58 PM
From: hlpinout	Read Replies (1) \| Respond to of 97611

Compaq-Proxicom Deal: Solution Providers To 'Wait And See' Exec says acquisition lets Compaq compete with IBM, not channel By Edward F. Moltzen, CRN New York 3:38 PM EST Fri., Apr. 27, 2001 E-mail this article Print this article Breaking News Compaq to SPs: Let's Fight Dell Bowstreet And Accenture Team Up To Deploy Web Services Microsoft To Formally Launch Office XP On May 31 Sun President Says IBM Numbers Mask Real Picture Layoffs? What Layoffs?: IT Positions Abound How To Beat The Soft Economy 20 Tools You Need To Beat The Economy Compaq-Proxicom Deal: Solution Providers To 'Wait And See' While solution providers await the true impact of Compaq's merger with integrator Proxicom, executives of the PC maker say the acquisition will let it compete better with IBM Global Services, not the channel. They also repeated plans to provide more "shrink-wrapped" Compaq services for solution providers to offer into accounts and said the Proxicom merger could help them in that regard. "I personally went through [Proxicom's] client list, and what was very interesting to me is we were dealing with about 70 percent of the same accounts but in different departments," says Jack Novia, vice president of sales for Compaq's Global Professional Services. "With Proxicom coming on board with us, we are better able to compete with IBM Global Services," Novia says. Novia and Dan Vertrees, Compaq's vice president of North American channel sales, met with a counsel of large enterprise solution providers Friday in a previously scheduled session and told them the deal would not create conflict. Some were eager to see how the deal would unfold. "We do have a good relationship with Compaq right now," says Renae Adam, vice president of planning and communications for Integrated Information Systems, Phoenix. "We really started beefing up our services relationship with them, especially in L.A. and the Midwest." However, Adam says it would be a "wait-and-see" situation with respect to the Compaq-Proxicom merger in terms of running into conflicts. "I'm not aware of any conflicts we've ever had with their services organization, even with the Fortune 1000," she says. "That may change with the Proxicom acquisition." In buying Proxicom, Compaq will acquire 950 service professionals that have worked largely in Fortune 1000 accounts ranging from America Online to Merrill Lynch. Overall, Proxicom maintained a roster of 90 clients, according to its most recent annual report filed with the U.S. Securities and Exchange Commission. The merger is expected to close by the end of June. Proxicom, in the SEC filing, lists IBM Global Services-%96as well as Web integrators Viant and Sapient%96-as its main competitors. Compaq executives say the $266 million deal bolsters their efforts to create more "SKU-able" Compaq service offerings for solution providers to offer into accounts. In meetings with a separate group of solution providers, Vertrees assured Compaq partners that the company's efforts to cut them in on Compaq services business would intensify. Before Compaq announced its Proxicom deal, Jay O'Callaghan, vice president of marketing services for Tempe, Ariz.-based Avnet's enterprise solutions division, said such efforts would benefit Compaq solution providers. "We rely on Compaq services a great deal to deliver and implement the Compaq-based solution," O'Callaghan said. "Any movement of Compaq's services organization to make it easy for us to configure a SKU-able service is a real positive thing for us."