Compaq attacks Internet market

Having capitalised on the PC and server markets, Compaq yesterday announced its assault on the Internet space.

Speaking here at the company's Innovate Forum 99 conference, Eckhard Pfeiffer, Compaq president and CEO, announced the company's strategy to "Web-enable enterprises" and become the number one Internet leader by the year 2000.

Branded as NonStop eBusiness, the initiative will "e-commercise" businesses through Web-enabled services, solutions and products, said John Rose, senior vice president and group managing director, enterprise computing group.

"Each of our business strategies is totally focused on Internet . . . our consumer business, our Internet PCs, our client business, our enterprise strategy and services strategy," Pfeiffer said.

While Pfeiffer admitted Compaq has been late to outline its Internet strategy, he stressed the organisation had already been focusing on the market.

"We have not seen the light of e-business today . . . by having the largest install base of Web servers . . . we've been doing that [already]," Pfeiffer said.

"We may have been late giving it a name . . . We've given it more focus and a name."

Meanwhile, ahead of Tuesday's conference, Pfeiffer addressed concerns about the company's lower-than expected preliminary Q1 earnings and revenues announced last Friday.

Pfeiffer said the company was in a "quiet period" but would not let that "slow [Compaq] down".

"Market conditions continue to be competitive . . . [Compaq will] continue to grow market share," he said.

Pfeiffer labelled streamlining and delivery of products, accelerated cost reductions and improved productivity and growth of the services business as important areas to pursue.

Pfeiffer also said Compaq's focus on the Internet should generate higher profit margins.

Compaq is due to release its first quarter earnings report on April 21.

* Luisa Bustos travelled to Houston as a guest of Compaq.

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