Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Latest News
    • PC Hardware

    Fiorinas Goal: Lessen Customer Confusion

    Written by

    Paula Musich
    Published October 9, 2001
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      LAKE BUENA VISTA, FLA. – Hewlett Packard Co. Chairman and CEO Carly Fiorina tried to make it clear Tuesday morning here at the Gartner Symposium that her company and Compaq Computer Corp. have a distinct plan for transitioning customers once its proposed merger is closed.

      In what was dubbed a “Mastermind Interview” with Gartner Inc. executives, Fiorina attempted to dispel any notion that HP and Compaq are confused about how they will proceed once the merger is finalized. “We intend to have investment protection plans and provide very clear transition paths,” Fiorina said. “HP and Compaq (before the merger news) announced we would use the [Intel Corp.] Itanium in our architectures. That eases the transition plans over time. We have detailed integration plans in place.”

      According to Fiorina, before HP and Compaq executives brought in the bankers to discuss a merger, they had already outlined how they could derive value from the merger, detailed what the organizational structure would be and put a regulatory plan in place.

      “This is about creating a stronger company to lead in the IT area,” she said.

      Fiorina described as a backdrop to the merger the kinds of alternatives CIOs faced in the 90s. “CIOs have been under-served by the IT community,” she said. “In the 90s it was the hot box alternative, or just Let us do it all for you, ala IBM.”

      She described today as the “ease of solutions era,” which demands applications that can create value with better price/performance, better experience and that allow IT to remain in control of their own environments. “That requires a new company that can manage complex heterogeneous environments that you can wrap professional services around. This accelerates the strategy that HPs been on,” she said.

      Fiorina: Dell is No IT Innovator Fiorina again insisted that the merger will yield a cost savings of $2.5 billion for the combined firm in eliminating duplication such as having two research and development organizations, overlapping administration functions, and from procurement savings from a combined company that spends $45 billion annually. HP still anticipates a 15,000 head count reduction.

      Although she cited legalities in not providing details, Fiorina said that in the first month after the merger closes, customers of the combined firms will know the plan. “[Theyll] know who their account team is and what the migration path is,” she said. “Many of the product roadmap decisions arent mysterious, and many customers have already made their own decisions. The bottom line is that customers wont be confused. As soon as we get closure, customers will know.”

      In describing HPs view of the PC industry and its position in it, she said the merger will make the firm the number one provider of PCs, number one provider of imaging products and number three provider of professional services behind IBM Global Services and EDS.

      “Clearly the industry is characterized by rapid commoditization,” she said. “This combination allows us to leverage investments Compaq made in a more efficient distribution system.”

      In a nod to Dell Computer Corp.s leadership in direct distribution, Fiorina acknowledged that the combined firm has to be as competitive as Dell in North America. “But there is also an innovation requirement,” she said. “This company is positioned to be a leader in innovation. Dell is not an IT innovator. Their reseller deal with EMC says they wont be an innovator in storage.”

      Fiorina denied that the Compaq brand will go away completely, although the new company will be called Hewlett-Packard in order to leverage its brand in the enterprise computing space. “Thats important because the HP brand has depth and breadth,” she said. “The Compaq brand cant stretch across that. Where the Compaq brand has equity well use it.”

      HP will rationalize its NetAction software products with its embrace of Microsofts .Net by emphasizing vertical areas where it can provide value, such as in rich media and mobile applications. At the same time, HP will seek to exploit the customer base that Compaq brings to market its OpenView family of network and system management software.

      Paula Musich
      Paula Musich

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.