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

To: Dan Packer who wrote (17653)	2/19/1998 10:19:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 97611

Excellent point Dan. Alta Vista is indeed a powerful product and I am sure it is worth a lot more than what we think. It therefore represents yet another product and above all an asset that CPQ can exploit either by spinning it off or keeping it. This is something I have overlooked and thanks for bringing it our attention,much obliged.

To: Dan Packer who wrote (17653)	2/19/1998 12:38:00 PM
From: John Koligman	Respond to of 97611

Dan, since you mentioned Alta Vista, there is an article concerning a potential increase in Dec's internet sales in today's Infoworld. Here it is... Digital's Internet group sees benefit in Compaq merger By Rob Guth InfoWorld Electric Posted at 7:47 AM PT, Feb 19, 1998 TOKYO -- Digital Equipment's sales this year of integrated software, hardware, and services to the Internet market should grow by about 75 percent over last year, and will benefit from its pending acquisition by Compaq, the head of Digital's Internet solutions group said Thursday in an interview with IDG editors here. The Maynard, Mass.-based company expects that sales to ISPs and corporations building intranets will reach $350 million by the end of its fiscal year in July, according to Dudley Howe, director of Internet Solutions Development at Digital. That figure reflects an annual growth in dollar terms about equal with that of the market as a whole, Howe noted. The company, therefore, expects its share in the market to remain unchanged year-on-year at about 15 percent, he said. If Compaq's pending acquisition of Digital is completed -- which officials said they expect should happen by the second quarter of this year -- Digital expects a boost in its sales to ISPs, Howe said. He estimated that the companies' combined share in the Internet solutions market will be about 23 percent. Howe could not comment on any specifics of the companies' plans, citing a "quiet period" dictated by securities regulators. He did say that in the area of Internet sales the two companies will "match in perfectly," since Compaq's strength is in basic Web servers while Digital's Internet offerings are aimed at the high end. Regardless of the merger plan, Digital expects its sales to ISPs to grow most quickly in the United States, followed by Asia and then Europe, which -- with the exception of some individual country markets -- has been "most complacent" about the Internet, Howe said. The core driver of growth in the United States is coming from telecommunications companies, which are making large investments into Internet infrastructure, he said. "They [telecommunications companies] got the news that the Internet is more than a threat," Howe said. "They are pouring huge amounts of money into it." Specifically, Howe said he expects that over the next fiscal year booming sales to telecommunications companies will help double the size of the market for Internet hardware and software to about $4 billion. Digital is also trying to expand its business in Asia despite the current economic problems gripping the region, Howe said. In Japan, where Digital's sales to ISPs have been weak, the company is boosting its Internet solutions sales force and is talking to Nippon Telegraph & Telephone about potential sales cooperation, he said. In some Asian markets Digital expects negative growth of the Internet hardware and software market but, aided by a counterbalance from strong sales in the United States, the group does not expect "any real impact on our business," Howe said. Digital Equipment Corp. can be reached at digital.com. Rob Guth is a Tokyo correspondent for the IDG News Service, an InfoWorld affiliate. Go to the Week's Top News Stories Please direct your comments to InfoWorld Electric Deputy News Editor Carolyn April Copyright c 1998 InfoWorld Media Group Inc. InfoWorld Electric is a member of IDG.net \| SiteMap \| Search \| PageOne \| Conferences \| Reader/Ad Services \| \| Enterprise Careers \| Opinions \| Test Center \| Features \| \| Forums \| Interviews \| InfoWorld Print \| InfoQuote \| John