The merger of Hewlett-Packard and Compaq Computer has enabled the combined company to leverage the strengths of the respective pre-merger companies, HP CEO Carly Fiorina said.
Fiorina said HP and Compaq each brought individual strengths to the merged company. Compaq brought an aggressive sales staff while HP brought strong problem-solving capabilities, she said.
"Those complex problem-solving capabilities tend to be stronger in pre-merger HP," than in Compaq, she said.
The merger is expected to generate US$3 billion in cost savings for HP in fiscal year 2003, according to HP.
In touting efforts to integrate the companies, HP executive vice president Jeff Clarke stressed the importance of the Internet in enabling pervasive communication.
"We cannot be at this point in the implementation of this merger without the ubiquitous Internet," Clarke said. "At the time Digital Equipment and Compaq came together, the Internet was not as ubiquitous."
In what may be seem a bittersweet milestone, the merger has actually exceeded by 25 per cent the original employee reduction numbers, which were projected at 10,000 for 2002. So far 12,557 jobs have actually been cut, according to HP. Some 5,400 more jobs are expected to be cut, Clarke said.
The merger has yielded $234 million in direct procurement savings and $257 million in labour savings in the second half of 2002, according to HP.