To: Mohan Marette who wrote (17383 ) 2/13/1998 11:17:00 AM From: John Koligman Read Replies (4) | Respond to of 97611
HP claims they can steal some UNIX business from CPQ/DEC.... HP aims to grab Unix share By Reuters Special to CNET NEWS.COM February 13, 1998, 5:40 a.m. PT SINGAPORE--Hewlett-Packard (HWP) said today that it saw an opportunity to grab a bigger share of the Unix operating system market while Compaq Computer (CPQ) and Digital Equipment (DEC) are integrating. "We believe the Unix business from Digital will be impacted. The VMS server business will be impacted," Lim Chon-Phung, HP's Southeast Asia general manager for enterprise business, told Reuters in a telephone interview. Last month, Compaq announced it was acquiring Digital for $9.6 billion. It was a move analysts said would help Compaq gain ground in the corporate market, in particular with Digital's strength in services and support. Many businesses still use Digital's OpenVMS servers, which are closely linked to the Unix operating system. HP said in a statement that industry reports showed Digital owned more than $1 billion of the total Unix server market. One of HP's strengths is in providing products and services for mission-critical businesses using Unix, WindowsNT, and mixed operating systems. Lim predicted that the merged Compaq-Digital would not pay much attention to the Unix business, opening the way for HP to get into large existing Unix-based corporate accounts. He could not say how big a potential this represented for HP in Southeast Asia. Lim said he expected a shakeout in both the personal computer and server markets after the Compaq-Digital merger. "First Digital's PC business--we can conclude that will be impacted seriously," he said. Industry watchers have doubts that Compaq would keep Digital's PC business as it is already strong in that area. Vendors like Dell Computer (DELL) which use Digital's services, would also have to sort out how they would continue to support their corporate customers, Lim added. Lim said there was also the question of the product lineup coming from Tandem Computers in the long run as there was potential overlap with products from Digital. Tandem, which makes network servers, was acquired by Compaq last year. Lim said sales from its enterprise products grew in Southeast Asia in 1997 despite the region's financial crisis. Growth was below the previous rates of 30 to 40 percent, he said, but declined to be more specific. "We expect to see HP grow in the IT market even though the overall market is shrinking. We have to take somebody else's market share," he said. On the various ways governments and international bodies were considering to improve the economic situation in the region, Lim said: "Our focus is predictability. Whether the [rupiah to U.S. dollar] rate is 4,000 or 10,000, we need to know it is going to stabilize." Story Copyright c 1998 Reuters Limited. All rights reserved. Go to | Front Door | Computing | Search Short takes | One Week View John