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January 23, 1997updated 05 Sep 2016 1:02pm

COMPAQ TO ANNOUNCE ITS INTERNET DIVISION

By CBR Staff Writer

As the final part of its reorganization, which was implemented last August, Compaq Computer Corp will announce later this quarter its Internet Solutions division. The unit’s responsibility is to sell Compaq equipment, predominately x86 servers into the companies that set up and maintain the infrastructure of the Internet, including telecommunications companies, Internet service providers, PTTs around the world and Regional Bell Operating Companies. George Favaloro, who was the divisions’ first recruit and is now director of strategy and business development said surveys he’d seen put the size of the market at about $1bn last year, but it would be a multiple billion dollar market very shortly. He added it was traditionally a market dominated by RISC machines running Unix, but x86 boxes running Windows NT were gaining share quickly, which of course is Compaq’s metier. Favaloro added that Compaq’s networking products weren’t part of the equation yet, as they’re still aimed at the low-end user market, but they were sure to figure in the near future. Prior to the reorganization Compaq had four product divisions. This was split into ten, and then the four market-oriented divisions were formed containing the products. The other three units are enterprise solutions, consumer and small business. The Internet solutions division currently has five directors, and is headed by senior vice president John Rose until a permanent chief can be found. Expect more from the new division this quarter and next.

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