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

To: Steve Porter who wrote (15000)	1/26/1998 2:56:00 PM
From: RetiredNow	Read Replies (2) \| Respond to of 97611

You don't just spend 9.6B and create an Alpha chip overnight. CPQ just doesn't have the core competencies to create a new division to compete on the server end. That's why they bought DEC and Tandem. It's the quickest way to position themselves to compete with IBM on equal footing. Remember, CPQ started out as a boxmaker. They've evolved since then, but that was their core competency.

To: Steve Porter who wrote (15000)	1/26/1998 2:57:00 PM
From: StockMan	Read Replies (2) \| Respond to of 97611

Re -- but don't you think CPQ could establish the same thing on it's own if they threw 9.6b$ at it? It takes a lot of time (2 years) to set up a world wide service organization. CPQ with DEC is hoping for a quick way to have it. All of DEC's servers etc.. will be junked eventually in favor of the CPQ/TDM line (with Merced/NT). Also DEC's installed base gives CPQ a fast path entry into th enterprise. With this they can more easily work their own (TDM) machines into the enterprise. The acquistion makes sense strategically. However the logistics of integratation and other things will take a while to hash out. CPQ is going after the $50 billion with a gusto. Stockman

To: Steve Porter who wrote (15000)	1/26/1998 3:01:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 97611

Steve: You don't want a company to remain static do you?

To: Steve Porter who wrote (15000)	1/26/1998 3:08:00 PM
From: WeisbrichA	Read Replies (3) \| Respond to of 97611

Steve, There is a HUGE time cost(investment) to ramp up into a WORLDWIDE service capability needed to support the high margin server business. Finding, training, and keeping (esp NT trained) competent field service technicians is major. For instance, to train a technician to be skilled in NT or Unix support can involve a period of 1 to 2 years, assuuming some electronics background. DEC already has done this for both NT and Unix. Thousands of competent NT and Unix trained techs are already located at hundreds of service facilities worldwide. RW