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To: Road Walker who wrote (46435)	1/26/1998 9:20:00 AM
From: Jules B. Garfunkel	Read Replies (2) \| Respond to of 186894

John, It certainly appears, more and more, that Compaq has its eyes on IBM's traditional businesses. First Tamdem and now Digital, it looks to me that CPQ is structuring itself to go head on with IBM in everything but IBM's software and services business. As for Intel, it would appear that their Pentium II chips for the enterprise market, are the engines for CPQ, that makes it all possible. Regards, Jules

To: Road Walker who wrote (46435)	1/26/1998 12:58:00 PM
From: Paul Engel	Respond to of 186894

John - Re: "Compaq buying DEC. Implications?" This will require some time and further thought to settle out, but: 1. AMD's customer list gets reduced by 1! Paul

To: Road Walker who wrote (46435)	1/26/1998 1:28:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 186894

John, re "Compaq buying DEC. Implications?" I don't know about buying two companies the size of Tandem and DEC in such a short period of time. I would think it would take at least a year or two to "digest" a company as big as Tandem, before putting the burden of ingesting an even bigger company such as DEC on CPQ. Also, there are a lot of overlaps among CPQ, TDM and DEC; e.g., all three make NT servers. Looks like the street agrees, CPQ down about two and a half. Also, why such a big purchase price for DEC? They'd been losing money big time until recently. I like Cisco's expansion through acquisition much better. They've been buying much smaller companies, with a rare medium to biggie size (Stratacom). Even they have had their struggles, however. A friend there said recently that, they've been growing so fast, that the typical department was like 75% new people (less than one year at Cisco). So, looks like they've slowed acquisitions, at least for now. Tony