NewsForge: Open Source May Help Save HP-Compaq Deal

“As HP and Compaq struggle to make their unlikely merger work,
there’s a lot riding on the deal for both HP’s CEO, Carly Fiorina
and her new “subordinate,” President Mike Capellas. Both have a lot
invested on how the deal plays out, and it is not entirely clear
who will run the company a year from now. One essential factor may
be whether Capellas’ advocacy of Open Source helps save HP’s
computer business.

“Some commentators suggested that the HP/Compaq merger project
“Abelard” was well named. Before this deal, the most famous Abelard
in history was a medieval French monk, forcibly castrated by a mob
after having sex with Heloise, one of his students. It hasn’t got
quite that rough in the boardroom, but the mob may not be through
with Fiorina quite yet. At every level, the merged company’s CEO is
being challenged by her subordinates, her investors, and her
financiers.

“One of the most striking details of the merger is the extent to
which Compaq, supposedly the junior partner in the deal, seems to
be coming out on top as the deal is executed. Headed for the
boneyard is HP’s NetServer line. The ‘New HP’ will adopt Compaq’s
Proliant servers, running the client’s choice of Windows, Linux, or
bare bones. HP will also dump its Journada line of PDAs in favor of
the iPAQ. Capellas said aloud what many observers thought when he
announced, in advance of the official HP announcement, ‘You are
what you eat. The New HP in many ways will resemble the old
Compaq…'”

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