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Information Week: Michael Capellas: Getting Compaq Back on Course

May 25, 2000, 16:03 (11 Talkback[s])

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"Last week, at the launch of Compaq's 32-processor AlphaServer GS Series, InformationWeek editors had an exclusive interview with president and CEO Michael Capellas. Since taking the reigns of the company last year, he's had his work cut out for him. Continuing losses in the company's commercial PC business, aggressive competition from direct vendors such as Dell Computer, and a brain drain that has hit both the executive ranks and key departments such as engineering have left many questioning the company's long-term future. But Capellas says he's optimistic that Compaq's troubles are mostly behind it and that new products, along with new partnering initiatives, will restore the company's luster among customers and Wall Street investors alike."

"...InformationWeek: To date, we haven't heard a lot from Compaq about Linux. Dell seems to be promoting it as a viable option for PC servers, and IBM is pitching it for the high-end. From Compaq's point of view, where does Linux fit in the market?"

"Capellas: Linux to me is still a play on the edge of the Web. There will be volume, it will play in certain spaces, which is really on the low end, being a departmental or Web server and maybe moving into the caching world. ProLiant with Linux is gaining significant share. But to move Linux into the enterprise space will take a huge amount of investment around system manageability, load balancing, and being able to optimize batch runs. So we're really not betting end to end on Linux."

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