The proposed merger between Hewlett-Packard and Compaq has suffered some setbacks since the companies announced a plan for Hewlett-Packard to acquire Compaq on September 4.
Recently, the three children of Hewlett-Packard cofounder William Hewlett and the David and Lucile Packard Foundation have opposed the deal that will bring the two companies under the Hewlett-Packard (HP) name. According to CNET, the foundation and the Hewlett and Packard children own a total of about 18 percent of HP’s company shares.
Opposition to the merger may delay the process or stop it from happening. “These developments place additional doubt on the likelihood of the acquisition being consummated,” said IT consultancy Gartner in its report titled “HP-Compaq deal less likely, so buy products with caution.”
In the meantime, the IT industry is left to wait. Because of the wait, many IT managers are asking themselves how to proceed with decisions about hardware and software purchases in 2002.
Gartner said that when making purchases for the long term, customers of both companies should confine their purchases to certain items Gartner has identified as strategic. These include the following:
- HP printers
- Compaq Proliant servers
- HP/UX servers
- Compaq StorageWorks storage for the midrange
- HP XP storage for the high-end
If it occurs, the planned merger of the two IT giants may have a lasting effect on the IT industry, and we want to know how you think it will affect your job as an IT manager. Would the merger change the way you purchase hardware and whom you buy it from? If you currently have a contract with Compaq, would you consider ending it and creating another with a different provider?
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