Satyr,
Here is some interesting info about the cpq/dec merger.
Wednesday March 4, 9:32 am Eastern Time
Company Press Release
Some Dowry: Digital Brings 72,000 Unique PC Customers To Its Marriage
With Compaq, Computer Intelligence Finds
PCs from Both Firms Found in More Large Locations than IBM's
LA JOLLA, Calif.--(BUSINESS WIRE)-- March 4,1998--Compaq Computer
Corp.'s [NYSE:CPQ - news] planned acquisition of Digital Equipment Corp.
[NYSE:DEC - news] will add substantially to Compaq's presence in the
largest U.S. business locations and at sites within key industry
segments, according to Computer Intelligence (CI), the market-research
industry's leading provider of sales and marketing solutions.
''The focus on Compaq's planned acquisition of Digital has so far
largely been on the financial aspects of the deal, on Digital's
enterprise sales and service infrastructure, and on the overlap of the
companies' product lines,'' said Dave Tremblay, Senior Industry Analyst
for Computer Intelligence.
''But an analysis of our databases has shown that there is a surprising
lack of overlap in the two companies' PC customers -- particularly at
larger U.S. business locations and in certain industries. Compaq knows
it is getting a first-class enterprise sales and service organization.
When the acquisition is complete, Compaq will also find that it is
getting an account presence and access to many new enterprise customers.
That additional leverage will help make this deal a win-win for both
organizations.''
CI's analysis shows that the more employees at a location, the more
likely it is to have at least one desktop PC from either Compaq or
Digital. Compaq desktops are found in about one-quarter of locations
with at least 100 employees and about one-third of those with at least
250 employees, the analysis found. Only IBM-branded desktop PCs are
present at more large locations than Compaq-branded desktops. Digital
will add about 4 percentage points to Compaq's penetration of locations
with 250 or more employees, enabling Compaq to surpass IBM in
penetration of those locations.
Digital PCs have a presence in about 80,000 locations in the United
States, approximately 72,000 of which (90 percent) do not have a Compaq
presence. Among those with at least 50 employees, 8,800 locations have
one or more Digital desktops but no Compaq desktops. The table below
shows that more than half of even the largest Digital customer sites
don't have a Compaq desktop presence. Digital presence will give Compaq
an entree into these sites, increasing the company's ability to compete
for their PC business.
Site Coverage by Site Employment Size
No. of Employees: 50-99 100-249 250-499 500-999 1000+
Sites with only Digital 4,036 3,059 826 492 396
Sites with Digital & Compaq 974 960 568 305 379
Source: Computer Intelligence 1998
CI's analysis also looked at the industry-segment coverage of the
companies and found some complementing strengths there as well. Compaq's
highest penetration of desktop locations is in the Government and
Education segments, both with high-teens percentage coverage. In the
three key commercial segments (Finance, Insurance and Real Estate
(F-I-RE), Transportation, Utilities and Communications (Tr-U-Com) and
Manufacturing), Compaq's penetration is about 15% (see chart below.) In
each of these segments, Digital's coverage will add substantially to
Compaq's. In the Tr-U-Com segment alone, Digital will add nearly 14,000
customer locations and more than 6 points of penetration. The story is
even better among the largest locations in these segments, where Digital
will increase Compaq's coverage by as much as 8 points.
Penetration of Desktop PC Sites
AG-M-C Manf TR/U/Com Whl-Rtl F-I-RE Svcs Med Educ Gov't
Unique
Digital
Sites 1.3% 1.0% 6.1% 2.0% 1.3% 0.8% 0.3% 1.6% 2.2%
Compaq Sites 11.2% 15.3% 15.0% 10.4% 15.8% 11.6% 6.5% 19.0% 17.9%
Source: Computer Intelligence 1998
The data is from detailed analysis of Computer Intelligence's Projected
Technology Database, one of the company's key tools for understanding
the presence of computer and communications technologies in 7.2 million
business establishments in the United States.
Computer Intelligence, a Ziff-Davis company, is the market-research
industry's leading provider of sales and marketing solutions to a wide
spectrum of computer and telecommunications companies. By leveraging and
enhancing the resources of its parent firm, Computer Intelligence
delivers actionable, fact-based information to an international roster
of clients including IBM, Microsoft, Sprint, Digital, Oracle, Cisco and
Apple.
Computer Intelligence's extensive research capabilities provide a wide
variety of products and services that help companies sell and market
more effectively. Each Computer Intelligence product or service is based
on proprietary databases built and maintained by CI specialists.
Headquartered in La Jolla, Computer Intelligence has U.S. offices in
Cambridge, Mass., Farmington and Norwalk, Conn.; Sunnyvale, Calif.; and
Dallas. CI's European headquarters are in Paris, with sales offices in
the United Kingdom, Germany and Spain, and sales agents in Belgium and
Switzerland. Samples of CI's extensive market data and research results,
timely commentary from industry authorities and previews of upcoming
technology events are available on the company's World Wide Web site,
www.ci.zd.com.
Ziff-Davis, a Softbank company, is high tech's leading integrated media
and marketing company. ZD content is the trusted source of information
for the global audience of business buyers and savvy consumers who
believe in the benefits of adopting new technology. Ziff-Davis enables
marketers to identify, reach and retain this audience through an
integrated system of media products and marketing services including:
research, events, print, Internet, television and education. |
