Compaq's bold bid for $US50 billion in sales

Compaq's bold bid for $US50 billion in sales

Compaq recently outlined ambitious plans for growth over the next three years across product lines - all intended to lead the company to a staggering $US50 billion in sales by 2000.

The decision coincides with the release of Compaq's US market share figures which rose to 18.8 per cent, nearly double the share of Dell, which finished second for the quarter, according to IDC. President and CEO Eckhard Pfeiffer seemed unswayed by the recent share market upheaval as he announced the $US50 billion plan, which he called "a wonderful, internal goal".

The server market in particular is expected to take off in the next couple of years. By 2000, Compaq will have servers available that can handle 100,000 transactions per minute, officials said, compared to the bulk of mid-range servers, which now handle 10,000 to 20,000 transactions.

And although 80 per cent of server customers buy single systems, Compaq is pushing clustering technology, which the company has been working on in a team that also includes developers from Microsoft and Digital.

As Compaq has shaped its ambitious plans for 2000, it also has begun to home in on its distribution channels.

Some aspects of Compaq's distribution model take circuitous routes that the vendor hopes to straighten out or eliminate altogether, according to Greg Petsch, senior vice president and general manager of manufacturing and quality.

New distribution model

He outlined the company's new optimised distribution model, which has given the impression that resellers, Compaq's traditional route to the market, are increasingly less necessary.

"It's a changing scope and mission for the resellers," Petsch said diplomatically.

The distribution model works with the company's optimised service model, which Pfeiffer said grew out of discussions with customers about what they want from Compaq.

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