Re: HP Buys Compaq

[Chris Rehm <javadisciple@xxxxxxxxxxxxx>]

On Tuesday 04 September 2001 06:33 am, Chuck Lewis wrote:
> Heard that on the radio on the way into work this morning Chris and am not
> sure WHAT to make of it. Off the top of my head, I don't see WHY HP would
> want Compaq. We were a BIG HP user where I used to work and we are a big
> Compaq user where I work now (PC's) and I have nothing against either. I
> just don't see why HP would want to bring on what basically is a PC company
> when they already have that. Especially at this time. Granted, it will make
> them a bigger PC company (but still behind Dell at # 1 !), but PC's are
> such a commodity... HP is diversified enough that they tend to weather the
> PC problem, but they have also been in AND out of the PC business too !
>
> Time will tell...
>
> Chuck
>
Chuck,
        What really surprised me to look at the deal was the size of the 
combined
company. It really is as big as IBM. I don't know how well that will work for
them, though, as it didn't do Unisys any good.
        I suspect that as a company they are hoping to become another IBM. They 
want
to be able to keep Compaq's customers from leaving the fold when they need a
high end scalable server and they want to be able to offer acceptable
solutions to HP users' low end needs.
        HP has been a great company with some wonderful technology entries into 
the
marketplace, but they have not been well received in the low end market.
Compaq has a good reputation in just that market.
        But the big question is whether the merged company will have the 
ability to
hold customers from either of the parts. My personal feeling is that it will
not. Historically (Unisys, Honeywell, Compaq/DEC) these things haven't worked
out. They always look good on paper and I have in the past always seen these
as "strong new competition.", but it doesn't last. However, in the short run
it will mean more for us as consumers because IBM and Sun will do their best
to woo away HP/Compaq's merger weary customers.


--
Chris Rehm
javadisciple@earthlink.net
If you believe that the best technology wins the
marketplace, you haven't been paying attention.