Word: ibm
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They come from different parts of the technology universe. Computer powerhouse Hewlett-Packard is an invention factory that has created hundreds of products, things like the handheld calculator, over its 62-year history. Compaq hasn't really invented anything. It sprang to life as an IBM-clone maker in 1982 and shot into the FORTUNE 500 in record time on the basis of its ability to give consumers low-priced machines built with mostly off-the-shelf parts...
...combined company will rival IBM in size and revenue, and theoretically it will leapfrog Dell in sales of PCs and midrange servers, the machines that act as the Internet's traffic cops. What is in doubt is whether Fiorina can put this heft to good use--and avoid the impact of any further downturn in consumer spending--by selling information-technology services along with hardware to corporations at a healthy profit. It's the hottest area of IT right now and will be for some time...
Fiorina and Compaq CEO Michael Capellas spent the week trying to assure everyone that the math would add up to 3. To get there, she could do worse than to follow in the footsteps of Lou Gerstner. The IBM chief inherited a company torn by turf wars and paralyzed by too many products in the early '90s. Gerstner healed wounds, cut the sprawl and scaled back the low-margin consumer-PC business, focusing instead on supremely stable high-end servers and the lucrative service contracts that came with them. "IBM is proof that it can be turned around," says Tony...
...there is the chance that the Justice Department simply felt that its work was done. Like IBM in the '80s, Microsoft didn?t have to lose its antitrust case to be tamed by the protracted scrutiny - the company has had to be on its best behavior for the past five years while a thousand other tech flowers bloomed. By this summer, Bill Gates was introducing the company?s new operating system, Windows XP, with just the sort of concessions on bundling that the feds have been after...
...While the locals fight it out, multinationals?with the exception of Microsoft?remain warily on the sidelines, unsure if they can profit in China's savage market. Today, Compaq and Hewlett-Packard have a combined market share of under 3%; Palm and IBM don't even sell PDAs on the mainland and there isn't enough Mandarin software to spur consumer interest. "We know this is a weakness," concedes Franklin Sze, product director for Compaq's iPAQ in Greater China. Preoccupied with tough times at home and hobbled by supply problems, U.S. PDA manufacturers have focused international efforts instead...