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  2. MIDRANGE-NONTECH
  3. September 2001

HP-Compaq

http://www.nytimes.com/2001/09/05/technology/05COMP.html?todaysheadlines

Another article on the acquisition. I think the statement by HP is realistic.
They want to expand their services business. That makes a lot of sense, since
the hardware business is so profit scarce. Also, HP has a lot of expertise to
offer, with this acquisition, to HP, Compaq, DEC customers in addition to
printing and imaging.

Some Wall Street guys say it is a pipe dream. I don't know. I don't expect
them to fold. If Compaq's margin was so slight because they were so dependant
on their hardware side, then expanding service options to those customers
will be profitable.

Anyway, I thought it was interesting.

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

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