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September 22, 1998

COMPAQ IS TURNING INTO DIGITAL, SAYS META

By CBR Staff Writer

The Meta Group believes that the Compaq/Digital/Tandem combination will remain unfocused for the next six to nine months and as a consequence will lose market share. Meta is worried that Compaq Computer Corp is morphing into DEC. It highlights recent announcements, such as Compaq giving more Tandem and Digital technology away to Microsoft in order to improve the enterprise facilities of NT, working on Digital Unix and NT interoperability (something all Unix vendors will be claiming) and discussing future compatibility between 64-bit Digital Unix and SCO Unixware. Meta also views Compaq’s decision to use the Alpha chip for Tandem Himalaya servers as a startling switch. None of these initiatives, says Meta, will significantly improve Compaq’s competitive position, because Compaq is increasingly becoming more like Digital. We expect continued strategic product rationalization delays as the new management organization (largely Digital alumni) stabilizes.

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