To: axp-list@redhat.com Subject: Compaq's Purchase of Digital: Let the dust settle Date: Mon, 26 Jan 98 12:38:26 -0500 From: "Jon 'maddog' Hall, USG Senior Leader" <hall@zk3.dec.com> Remember all the mail messages on this list when the rumors of Intel's "purchase of the Alpha" came out? Before we spend hours and days debating this on this list, let's take a breather to see what rolls out. In the meantime, since I just came back from a meeting on this, let me give some insight: First of all, in a merger like this, nothing happens real suddenly. People at the top make the decision to have the merger, then the reality of things trickle down. Even if this meger goes through smoothly (i.e. FTC does not make any waves), it will take a quarter or two for PLANS to be created, much less action to be taken. Secondly, Digital has agreements with Intel, Samsung and Mitsubishi regarding the Alpha which we (and Compaq) have to honor. Third, one of the "selling points" of Digital is the Alpha, and our ability to make world-class servers out of it. What I see in this deal (and this is definitely "maddog" speaking, not Bob Palmer) is: o Digital gets both more and better channel support than before o Compaq gets a world-wide support group and larger direct sales force o The merged companies become #2 in the industry, with $37.9 Billion in revenue last year o Compaq gets access to several world-class operating systems o Digital products get name recognition through Compaq (yes, I dare say that to the general public, Compaq has better name recognition than Digital) o I would dare say that Compaq advertises far more than Digital o Digital's PC technologies will blend with Compaq's, and Compaq will then market them o As before, when we sold the FAB plant to Intel, we predicted lower prices of Alphas due to increased utilization of the plant. Compaq's quantity purchasing power of components and volume line-production should help our production of boards and systems drop. As to the specific questions about the Alpha boards, Alpha Linux and Digital's support of Linux, I see no reason for that changing. The investment we make is a good business proposition. There is no reason for Compaq to change that. On the other hand, it now gives Linux a chance to approach Compaq "from inside" to convince them to give better support of Linux on Compaq Intel systems, as well as Alpha. md -- ============================================================================= Jon "maddog" Hall Internet: maddog@zk3.dec.com Senior Leader, UNIX Software Group Executive Director, Linux International Digital Equipment Corporation Linux International Mailstop ZK03-2/U15 80 Amherst St. 110 Spit Brook Rd. Amherst, N.H. 03031-3032 U.S.A. Nashua, N.H. 03062-2698 U.S.A. WWW: http://www.unix.digital.com WWW: http://www.li.org Voice: +1.603.884.1341 Voice: +1.603.672.4557 FAX: +1.603.884.6424 Office: ZK03-2/V15 Board Member: Uniforum Association -- To unsubscribe: send e-mail to axp-list-request@redhat.com with 'unsubscribe' as the subject. Do not send it to axp-list@redhat.com