Close
  • Latest News
  • Artificial Intelligence
  • 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
Logo
  • Latest News
  • Artificial Intelligence
  • 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
    Home Latest News
    • PC Hardware

    HP, Compaq Form Launch Team

    By
    eWEEK EDITORS
    -
    March 26, 2002
    Share
    Facebook
    Twitter
    Linkedin

      Hewlett-Packard Co. and Compaq Computer Corp. have formed a “launch team” and increased the number of employees working on integration efforts while they await official certification of last weeks shareholder votes clearing the way for their $22 billion merger.

      The stepped-up efforts, disclosed Tuesday, reflect HPs confidence that it won enough support from shareholders to go forward with the deal, even though the company hired to certify the count has yet to complete its tally, and despite contentions from merger opponent Walter Hewlett that the vote is too close to call.

      Yet, even as merger efforts pick up steam, HP and Compaq employees were advised in an internal memo Tuesday that the two companies must continue to operate like rivals until the proxy votes are certified and legal documents are finalized.

      The message, sent by HPs Webb McKinney and Compaqs Jeff Clarke, the two executives in charge of merger integration efforts, summarized some of the final preparations under way, but disclosed little in the way of new details about the merger.

      “Please remember that Compaq and HP are required by law to function as competitors until legal close and the new company officially launches,” the memo from McKinney and Clarke states.

      Nevertheless, McKinney, president of HPs Business Customer Organization, and Clarke, Compaqs chief financial officer, touted heightened preparation efforts already under way.

      “The successful integration of these two great companies is a tremendous challenge,” the memo says. “But it also represents an unprecedented opportunity to create a strong competitor, accelerate growth and extend our industry leadership.”

      Aside from noting that more than 1,200 HP and Compaq employees are now working full-time on merger planning, up from 900 earlier this month and 400 late last year, the most noteworthy news revealed in the memo was that the companies have formed a launch team “focused on planning all activities and deliverables required for a successful launch.”

      Among its duties, the launch team will:

      • Distribute letters from HP Chairman and CEO Carly Fiorina, new HP President Michael Capellas (Compaqs chairman and CEO) and others to employees, customers and business partners;
      • Produce product road maps, go-to-market strategies, service and support offerings, etc., to employees, analysts, customers and partners;
      • Distribute detailed information to employees about internal integration plans, including organizational structure, selection processes, etc.;
      • Develop outreach programs for employees, customers and partners; and
      • Produce toolkits and playbooks for customer-facing employees outlining processes and procedures for engaging customers as the “new HP.”

      “We have nearly completed the four-phase integration planning process,” the message from McKinney and Clarke said. “One of our key goals from the start of this process was to make sure the new company would be prepared to open its doors and hit the ground running in the April-May timeframe. We are on target to reach this goal.”

      Before the companies can officially merge, they must await a certification of last weeks shareholders vote by IVS Associates Inc. of Newark, Del. Last week, an IVS representative said tallying the vote could take several weeks.

      Should the ballot count confirm HPs assertion that it won enough support to proceed with the merger, HP and Compaq must then complete and file necessary legal documentation with various regulatory and government agencies.

      But even when the launch date is set, and despite six months of integration planning, the executives cautioned that the massive task of merging the two large computer makers wont happen overnight.

      “It is not realistic to expect that every decision regarding the new organization will be finalized or announced on launch day,” the memo to HP and Compaq workers states. “We must give top priority to decisions that maximize continuity and minimize service interruption in our customer-facing organizations.”

      About 15,000 jobs will be eliminated as the result of the merger of HPs 85,000-employee work force with Compaqs 63,000 employees, according to representatives of the two companies. However, industry analysts have speculated that the actual number of layoffs within the first year of the deal will likely exceed 20,000.

      Should the merger be completed, HP will emerge as a powerful new competitor in the high-tech arena, becoming the market leader in sales of personal computers, enterprise storage, Windows- and Unix-based servers, and imaging and printing.

      Together, HP and Compaq sell products into more than 160 countries and have a combined annual revenue of nearly $90 billion.

      Related stories:

      • HP Presses On as Votes Tallied
      • Combining HP, Compaq Services Efforts a Formidable Task
      • Compaq Shareholders Approve HP Deal
      • HP Says Merger Approved; Hewlett Disagrees
      • Special Report: HP Courts Compaq
      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      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
      Applications

      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
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Careers

      SThree’s Sunny Ackerman on Tech Hiring Trends

      James Maguire - June 9, 2022 0
      I spoke with Sunny Ackerman, President/Americas for tech recruiter SThree, about the tight labor market in the tech sector, and much needed efforts to...
      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.
      © 2022 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.

      ×