The merger between Compaq and Digital, estimated at $US9.6 billion, has barely raised an eyebrow here in New Zealand.
The Computerworld 1000 Survey asked 30 of New Zealand’s leading companies about the impact of the merger on their businesses. Five respondents felt it was good for their businesses, none felt it would be bad and 24 felt it was irrelevant.
Despite the lack of relevance, half of the respondents felt it would be bad for competition in New Zealand and eight thought the merger would be good for competition.
Wenita Forests Products’ Auckland office manager, Martin Sherwin, doesn’t see the merger as having any major impact on his business.
Sherwin believes the merger will be good overall because currently there are too many players in too small a market.
“There are five or six big players and in some ways, there are too many for good competition.” Sherwin believes that by pooling resources Compaq will be able to spend more on research and development and provide a wider range of equipment across the market.
Sealord Group’s IS manager, Andrew Dean, sees his company benefiting from the merger. “We have a network of about 300 PCs and we tend to align ourselves with the larger players.” Sealord uses IBM, Compaq and Digital because of their stability. “For us it’s probably a good thing because it gives them added strength and now we have one less supplier to deal with.
“The downside is that it reduces competition in the desktop market, but there’s probably enough competition there anyway. There are always people willing to jump in and compete there.”