Local News

Compaq-Digital Merger Creates Powerful Force to Take on IBM

Posted January 26, 1998

— The biggest acquisition in the computer business joins the number one personal computer maker with a long time powerhouse in business computers. Compaq computers is buying Digital Equipment Company for $9.6 billion making Compaq the second largest computer company in the world. In the age of networking and powerful business computers, DEC brings a lot to Compaq. Here's more from WRAL OnLine reporter Tom Lawrence.

The announcement did not surprise the industry.Compaqis aggressive and wants to make a strong move to business or enterprise computing. Strong marketing and pricing have put the Houston based company at the top of the heap.

Darlene Johns' company sells Compaq andDigitalmachines. She serves on Compaq's National Reseller Advisory Board.

Listen toauorReal Audiofile."One of the things that we said is you know, to get into the higher end. For companies like myself, we want to go the higher end rather than the PCs."Digital was a leader in mainframes until the 1980s. The company lost money and lots of employees. However it retains a strong service staff and lots of technology that could find its way into consumer machines.

Listen toauorReal Audiofile."It will add a lot of technology for later and for growth for the company and for what may be for pcs in the future."Systems integrator Michael Shook agrees and says Compaq will remain strong in the consumer field.

Listen toauorReal Audiofile."They're going to compete head to head at the consumer level so you're going to see two tiers. You'll see a strategy going at that level and clearly they want to go after corporate America too."The Compaq-Digital Equipment merger creates a powerful force to take on the number one computer company in the world,IBM.

Listen toauorReal Audiofile."I think it's going to be an absolute shootout. But I think IBM, while things in this business of coming to closure on this acquisition. My counsel to IBM is move fast, move quick, move intelligently."


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