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To: Mary Cluney who wrote (50192)3/9/1998 12:21:00 AM
From: Paul Engel  Respond to of 186894
 
Mary - Re: "But, what is the point? Why did they do it this way? and what does this do to their relationship with an important supplier?"

Compaq, in one year - 1997 - tried to create and own the low end of the PC spectrum and enter the very high end of enterprise computing with the purchase of Tandem.

Throughout this period, Pfeiffer kept talking about Compaq becoming a $50 Billion company. DEC then became the stepping stone to boost them into that range.

These are clear indications of a big ego at work and we are now witnessing what havoc a big ego can wreck when it runs amok in business.

Re: "How many phone calls can their customer service department handle from first time users before the $50/$100 turns into a loss."

All these questions presuppose that these sub-zero customers figure out how to plug their computers into the wall. I'd bet a lot of them don't get that far - and never bother Compaq at all.

The sub-zero purchases just provides conversation down at the Nautilus club or other such fitness centers.

Paul