HP/Compaq: fate of overlapping products known next year

Hewlett-Packard and Compaq customers will be waiting until next year to discover which of the products they use have a future.

Hewlett-Packard and Compaq customers will be waiting until next year to discover which of the products they use have a future.

There is massive overlap between the product lines of the two hardware makers, which announced this week that they will merge in a US25 billion deal.

But HP head Carly Fiorina says details of which products will get the chop won't be revealed until a transition plan is worked out.

Analysts point out there is overlap from servers to handhelds in the product ranges of the two companies. That's giving rise to some nervousness on the part of users.

Wellington shipping company Seatrans uses Compaq Alpha servers, Compaq PCs and HP printers and scanners, and is keen to continue with that mix.

Sky City Group, a big Compaq customer, thinks the merger will be good for Compaq customers.

According to market researcher IDC, the combined company will account for 36% of the New Zealand PC market and 45% of the commercial systems and server market.

The merger is not expected to have necessary regulatory approval before next year, according to Fiorina, who will head the new company. Compaq head Michael Capellas will be president.

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