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

To: Spots who wrote (24542)	4/17/1998 11:31:00 PM
From: Dorine Essey	Read Replies (1) \| Respond to of 97611

Anyone see this? Dorine A brand new Compaq? By Lisa DiCarlo, PC Week Online April 17, 1998 4:36 PM PDT The integration of Digital Equipment Corp. and Tandem Computers Inc. into Compaq Computer Corp. is proceeding apace, with integration teams from the three companies meeting to decide how to create a computing colossus. One of the lead reorganization plans under consideration is to call the combined company by a new name, currently code-named Newco. The new company, sources said, would use the Compaq (CPQ) , Digital (DEC) and Tandem names for brands only. Three subteams are managing the merger, each of which is made up of executives from the three companies. The troika plans to integrate each of its solutions offerings--products, services and support--to create a single overall strategy based on volume and vertical industries, sources said. The subteams are being managed by William Strecker from Digital and John Rose from Compaq. The groups comprise an enterprise-focused solutions team led by Tandem's Norm Goldberg; a service-driven infrastructure solutions team led by Janet Wallace of Digital; and a partner-driven volume solutions team led by Compaq's Ronnie Ward, according to an internal Digital memo sent to employees last week. The plan illustrates a strategy of providing a unified set of products and services for the diversified set of customers that each company has been serving individually. On the services side, the companies plan to merge their organizations into a single services division, which they hope to have up and running by July 1, according to the Digital memo. A sales integration team will take advantage of each company's strengths according to geographic region, sources said. The companies will leverage Digital's solutions approach, Compaq's channel presence, and subsidiary Tandem's focus on finance and telecommunications markets to reach customers large and small. The final structure of the sales organization will not be announced until the Compaq-Digital merger is approved, which is expected by the end of the quarter. The prospect of a unified organization holds both promise and possible peril for some customers. "My concern is that there would be less priority and focus," said Karl Kay, vice president of workstation architecture at Countrywide Home Loans Inc., in Calabasas, Calif. "But it might produce some cross-platform management tools." Even with plans falling into place for integrating Digital and Tandem tightly into Compaq, a key Digital executive said Thursday he will leave the company following the merger. As reported yesterday, Bruce Claflin, Digital's senior vice president of worldwide sales and marketing, will depart after Compaq's acquisition of Digital is complete. Additional reporting by John Dodge