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Many solution providers were against the HP-Compaq merger. But 10 years later, partners reflect on the historic deal and how it changed HP -- for the better. Big technology mergers weren't thought of very fondly by the channel, and many HP and Compaq partners were fearful the proposed merger would put both IT vendors in jeopardy and also cause a major disruption to VARs' businesses. But fast-forward a decade, and solution providers say the historic merger was a surprising success and ultimately helped their businesses. And the bold move ultimately produced what the two companies promised — a worldwide technology powerhouse with top revenue positions in servers, PC and printers go here for the official HP-Compaq merger press release.


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WATCH RELATED VIDEO: Обзор HP Compaq Presario CQ57

Compaq Computers: Rod Canion


The PC giant takes a major step toward its stated goal of becoming the No. The acquisition, which has been the subject of high-level, on-again, off-again negotiations for at least two years, essentially will provide Compaq with the high-end hardware technology and the worldwide corps of consulting engineers it has needed to act as a global technology provider.

Together, we are a much stronger competitor than we were as separate companies," Digital chairman Robert Palmer said in a conference call today.

The deal, which is expected to close sometime in the company's second quarter, comes at a time when Digital is moving away from its losses and into the black.

Compaq has been the world leader in PCs for some time, but it has not had the high-end corporate "enterprise".

Through Digital, Compaq gains 1, certified Windows NT technicians and 3, Unix professionals, as well as a full line of Unix-based servers and workstations. That makes us the No. A Digital acquisition also brings Compaq a good deal of hardware technology it will not need.

Once the merger is completed, expect Compaq to terminate Digital's PC and notebook business, though the company's workstation and midrange server lines should survive, analysts say.

Among some of the initial changes Compaq likely will make after the acquisition, the computer maker likely will begin to rid itself of Digital's PC line as well as its computer-manufacturing capabilities. Many of Digital's employees may be relocated to Texas, as well.

In addition, upper management from Digital likely will leave the company within a short period of time, much as upper management at Tandem left the company shortly after it was acquired by Compaq.

The deal is expected to close sometime in the company's second quarter. Roger Kay, an analyst at International Data Corporation , said initial changes likely will begin soon after. Other changes, Kay added, will take place gradually. Compaq likely will continue to sell Digital's Alpha and Intel-based workstations and only incrementally merge product lines. But Kay said that, while the Compaq-Digital deal looks good on paper, it has the potential to founder on cultural issues, a point Pfeiffer himself brought up during today's conference call.

They will build a better technology and wonder why people never came," Kay said, noting that Compaq has the opposite emphasis, focusing more on practical application. Interestingly, while cultural issues loom in the acquisition, analyst Chip Christiansen of IDC Research pointed out that many Compaq executives came from Digital.

Many pointed out also that the deal could spell the end of the Digital's Alpha technology, though not immediately. The bit computing platform--which does not exist on Windows-Intel technology--accounts for a large portion of Digital's revenue.

Still, over time, commitment to Alpha may fade. Digital earlier this year said it would support Intel's upcoming Merced chip, which rivals Alpha. Compaq will need to turn [Alpha] into revenue growth,". Kumar added further that the transfer of Digital's chip foundry to Intel in a recent legal settlement likely will not hold up the current deal. He said he had no doubt that Compaq did its due diligence surrounding the issue.

Pfeiffer, for his part, pledged commitment to Alpha. The deal, which Christiansen said has been discussed for two years, probably became a reality because of Digital's concerted effort to shed itself of business units over the past two years. Since , Digital has been able to rid itself of its disk drive operations, printer business, networking unit and, more recently, its chip fabrication plant. Be respectful, keep it civil and stay on topic.

We delete comments that violate our policy , which we encourage you to read. Discussion threads can be closed at any time at our discretion. Michael Kanellos. Compaq CPQ took a major step toward its stated goal of becoming the No. Like many other analysts, Kay sees the Digital Multivendor Pfeiffer on what Compaq gets out of the deal Customer Service MCS division, Digital Equipment's consulting and support arm, as one of the crown jewels of the deal.

Moreover, much of the work performed by the unit lay in high-level consulting rather than in the more pedestrian--and less lucrative--area of maintenance. Probably not. Momentum will shift to the Wintel camp with the appearance of Merced. Pfeiffer on what Compaq gets out of the deal.


Who Coined 'Cloud Computing'?

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When Rod Canion, Jim Harris and Bill Murto founded Compaq in with just $ they set out with a clear vision of providing personal computers that were not.

HP Compaq nx7200 Series Notebook PCs - Overview


The PC giant takes a major step toward its stated goal of becoming the No. The acquisition, which has been the subject of high-level, on-again, off-again negotiations for at least two years, essentially will provide Compaq with the high-end hardware technology and the worldwide corps of consulting engineers it has needed to act as a global technology provider. Together, we are a much stronger competitor than we were as separate companies," Digital chairman Robert Palmer said in a conference call today. The deal, which is expected to close sometime in the company's second quarter, comes at a time when Digital is moving away from its losses and into the black. Compaq has been the world leader in PCs for some time, but it has not had the high-end corporate "enterprise". Through Digital, Compaq gains 1, certified Windows NT technicians and 3, Unix professionals, as well as a full line of Unix-based servers and workstations. That makes us the No.

Compaq: Gone But Not Forgotten

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Industry analysts seem to agree that Hewlett-Packard Co. During this chaos, the thinking goes, customers would lose their service and support connections and would flee to another vendor. Sun Microsystems Inc. One of the most negative reactions to the deal came from Martin Reynolds, an analyst at Gartner Inc. The deal is really beneficial only to top executives at HP and Compaq and not to customers or employees of the two companies or even investors, said analyst Roger Kay at IDC in Framingham, Mass. The products that remain from the combined company "might not be the best products" but will survive based on whether a product group is located in a new plant or a low-cost market or a country where labor laws restrict layoffs, added analyst Rob Enderle at Cambridge, Mass.

By Ben Thompson

Compaq a portmanteau of Compatibility And Quality , occasionally referred to as CQ prior to its final logo was an American information technology company founded in that developed, sold, and supported computers and related products and services. Pfeiffer served through the s. Ben Rosen provided the venture capital financing for the fledgling company and served as chairman of the board for 17 years from until September 28, , when he retired and was succeeded by Michael Capellas , who served as the last chairman and CEO until its merger with HP. Prior to its takeover the company was headquartered in northwest unincorporated Harris County, Texas , that now continues as HP 's largest United States facility. The three of them had left due to lack of faith and loss of confidence in TI's management, and initially considered but ultimately decided against starting a chain of Mexican restaurants. The first Compaq PC was sketched out on a placemat by Ted Papajohn while dining with the founders in a pie shop, [11] [13] named House of Pies in Houston. Their first venture capital came from Benjamin M.

The HP Compaq nx is a new addition to the HP Pavilion dv/Compaq Presario V notebook series. However, this full-featured mainstream commercial.

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Before merging with HP, Compaq manufactured a full range of laptop computers. Now they are manufactured by HP mostly with basic features. Compaq Presario CQ Compaq Laptop.

Compaq Portable

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It was Compaq Computer Corporation 's first product, to be followed by others in the Compaq Portable series and later Compaq Deskpro series. The computer was also an early variation on the idea of an " all-in-one ". The 28 lb 13 kg [12] Compaq Portable folded up into a luggable case the size of a portable sewing machine. The user can use both IBM video standards, for graphics capabilities and high-resolution text. With a larger external monitor, the graphics hardware is also used in the original Compaq Deskpro desktop computer.

To live in a moment that will be in history books is not a particularly pleasant experience; history, though, has another cruelty: those that are not remembered at all. Consider Compaq: it was one of the most important companies in tech history, and today it is all-but forgotten.

We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from. To learn more or opt-out, read our Cookie Policy. An HP spokesperson has confirmed to us this afternoon that the company will be shifting its strategy around the Compaq brand starting sometime in , eliminating "HP Compaq" phrasing altogether and concentrating solely on the low end of the market. That's not a drastic change — Compaq has long been relegated to the lower rungs of HP's consumer-facing product portfolio — but historically, those products have often been little more than reskinned HP models. Starting next year, we're told they'll bear the Compaq name alone and will be members a dedicated line of "basic" PCs at "entry-level pricing. Compaq — the storied PC brand that HP acquired in — has been little more than an afterthought for HP in recent years, its divisions and intellectual property having long been absorbed into the mothership, so this could prove to be a meaningful rebirth for the marque at retail.

Cloud computing is one of the hottest buzzwords in technology. It appears 48 million times on the Internet. But amidst all the chatter, there is one question about cloud computing that has never been answered: Who said it first? But Technology Review tracked the coinage of the term back a decade earlier, to late , and to an office park outside Houston.




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