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Basically, it's a one-stop, on-line store stocked with products and services offered by Compaq partners.
The primary purpose of Club Web is to connect customers with providers such as Web developers Internet Service Providers and resellers who have special skills in planning, implementing and maintaining our Internet solutions.
What these examples demonstrate is the Internet's power as a tool not only to provide information but to deliver an even more valuable commodity - knowledge.
Our goal is to help customers turn information into knowledge and knowledge into a competitive advantage.
The combination of Compaq and Digital gives us a broad range of Web-based solutions for electronic commerce, Internet Service Providers, corporate Intranets and customer relationship management.
Earlier this year, Compaq introduced the industry's most flexible and comprehensive electronic business solutions.
These solutions build on our e-commerce and firewall servers as well as our key relationships with leading applications providers.
The highly scalable and reliable systems delivered by Digital and Tandem are particularly important in the 24x7 environment of Internet commerce, where downtime means lost business.
Compaq is also the leading supplier of solutions for Internet Service Providers.
Seven of the top eight ISPs have standardized on Compaq for their NT-based Web hosting services.
And Digital is #2 in the ISP market - with more than 15 percent share.
Compaq also plans to build on Digital's AltaVista franchise, which includes one of the leading search engines on the World Wide Web.
Just last week we announced a new line of consumer PCs with buttons that provide direct Internet access, including a link to AltaVista.
We believe this will help establish AltaVista as one of the most popular sites on the Web.
One of the most important synergies between Compaq and Digital - one that matters a lot to our customers - is services.
Some observers have suggested that the only reason Compaq bought Digital was to get its service organization.
That was not the only reason, but it is true that service is a significant part of the value equation.
Customers have told us over the past few years that they want to deal with fewer vendors, and they want those vendors to be more accountable for the products and solutions they provide.
After all, when you implement a complex enterprise solution, you want the assurance that you will have the support you need to get it done quickly and efficiently.
With the acquisition of Digital, we now have one of the premier service organizations in the world working even more closely with our customers and partners.
The combined company has more than 5,000 IT architects to guide customer implementations as well as 3,000 UNIX engineers and 700 NetWare certified engineers deployed around the world.
Overall, we have more than 25,000 service professionals who can deliver support and availability services systems integration and operations management in more than 100 countries.
And we have a worldwide network of channel partners with whom we are working to jointly implement integrated, multivendor lifecycle solutions.
Our goals are to lower customers' total cost of ownership and reduce risk by offering service solutions which incorporate industry standards and by driving innovation in service creation, tools and delivery.
We will also help you achieve your business objectives more rapidly, more cost effectively and with greater predictability.
Building strong customers relationships also means giving you maximum flexibility in doing business with Compaq - how you want where you want and when you want.
With the acquisition of Digital, we now have a world-class team of 10,000 sales and marketing professionals worldwide who work directly with our large customers.
We also have the largest network of channel partners in the industry, who offer value-added expertise and solutions.
In addition, Compaq has fundamentally changed its core business model so that we can meet - and exceed - your expectations.
These changes include new manufacturing methods an optimized supply chain and reduced channel inventories.
Why is this important to you?
Because it enables us to meet our objective of doing business more efficiently and that means lower product prices and improved product availability.
Last week, for example, we announced a new program called Compaq Built for You in partnership with leading retail chains like CompUSA Office Depot and Computer City. v This program allows customers to self-configure a selected group of Compaq PCs in the store. Once the customer has configured the system he wants, the he pays the retailer. All orders are then custom manufactured by Compaq and shipped either directly to the customer or to the retailer. It's your choice.
As of today, Compaq Built For You is available in about 100 stores. By the end of August, we will be up in 2,000 stores. And by Christmas we will be configuring customers' computers in 4,000 stores across the country.
We are also enhancing the ability of customers to purchase products over the Internet, both from Compaq and our worldwide network of retailers.
In fact, Compaq and its resellers today sell more than $6 million dollars a day over the Internet - and that is more than Dell.
We are proving that Compaq can bring together the widest array of products and services combined with the extensive capabilities of our resellers to offer you the best value in the industry.
How you buy is important but what you buy is just as critical.
With the acquisition of Digital, Compaq has one of the broadest product portfolios in the industry - from handheld PCs to the most powerful enterprise servers.
Since this is PC Expo, let me start with PCs.
Now that we have completed the acquisition of Digital, we will merge the two companies' PC product lines. This will give Compaq the most extensive and competitive line of desktop and networked PCs in the industry.
According to first quarter numbers from International Data Corporation, Compaq remains the #1 desktop PC company in the world. I am particularly pleased that Compaq regained the #1 position in portable PCs in North America - in both the commercial and consumer segments.
What that should tell you is that we are determined to maintain our position as the number one PC company worldwide. And we will do it by continuing to offer standards-based, innovative and easily managed desktops and portables that integrate seamlessly into your enterprise environment.
To those in the audience who are Digital customers, I want to assure you that we are not taking your business for granted. We intend to earn your trust and confidence.
Although we will move the Digital PC line to Compaq-branded products, we will do so over a period of time that allows you to make the transition at your own pace.
I believe our customers will be well-served by this combination.
Our desktop businesses are very compatible. Both companies lead the industry in reducing cost of ownership by providing the best managed PCs. We lead the Windows NT market for desktops. And Compaq is Microsoft's only lead partner for the early deployment of Windows NT 5.0 in corporate environments.
That leads me to my next point - our commitment to Windows NT.
As I said earlier, Windows NT is one of the most important trends in industry standard computing. And Compaq is committed to advance Windows NT as an enterprise operating system.
This is another instance where Compaq and Digital have tremendous synergies. We can now deliver the widest range of Windows NT systems and solutions in the industry - from portable computers to Digital's high-end AlphaServer systems.
Our strong partnership with Microsoft as well as our own experience deploying Windows NT throughout Compaq puts us in the best position to help customers implement NT solutions.
Through advanced technologies like clustering and ServerNet - the system area network developed by Tandem - Compaq is also improving NT's performance, reliability and scalability.
Compaq already owns the performance benchmark for Windows NT systems with more than 27,000 transactions per minute.
By the year 2000, we expect to deliver clustered NT systems that deliver 500,000 transactions per minute.
Through Digital's AllConnect and Affinity programs and Tandem's "Best of Both Worlds" program Compaq also offers industry leading NT inoperability with Digital UNIX, OpenVMS and NSK.
This will help protect your IT investments while enabling you to take greater advantage of industry standard technology.
Finally, Compaq's new services organization has more than 2,000 Microsoft certified engineers around the globe to help customers deploy Windows NT-based solutions for the enterprise.
One question I often get from customers is about Compaq's commitment to Digital's 64-bit architecture, including Alpha, Digital UNIX and OpenVMS.
The answer is easy. Compaq will continue to invest in this high-performance, 64-bit platform because it represents the future of computing.
Alpha gives Compaq a leadership, 64-bit architecture at least two-years ahead of Merced - which, I should add, will also be an integral part of our product portfolio.
We see Alpha as an extension of Compaq's current product line and as a strategic platform for power-hungry applications like data warehousing, high-performance technical computing and Internet commerce.
We also see an opportunity to establish Alpha as an open industry standard, building on Digital's licensing agreements with Intel and Samsung and its proposed agreement with AMD.
I think it is important to note that Microsoft is using Alpha as the development platform for 64-bit Windows NT.
We also see significant opportunities to deliver customer value with Digital UNIX, which is widely regarded as the leader in 64-bit UNIX. It is also the most Windows NT-friendly UNIX on the market.
Digital has attracted several partners to help develop Digital UNIX for Merced. This gives us an opportunity to establish Digital UNIX as the standard for 64-bit UNIX on Alpha today and on Alpha and Merced in the future.
In addition, we will continue to partner with SCO to offer UNIXWARE to the 32-bit Intel volume market I also want to reassure customers who rely on Digital's OpenVMS operating system as well as on Tandem's NonStop Kernel that we will continue to support and enhance these products.
They are important to us because they are important to our customers, who depend on them for the most demanding, business-critical computing.
But we also plan to exploit the technologies behind these operating systems to provide greater reliability and scalability in our industry standard platforms.
I have covered a lot of ground today, so let me conclude by summarizing our vision for the new world of computing.
First, we believe that this new world will be built on open, industry-standard technology. Anywhere there is standards-based computing, Compaq wants to be the driver -- whether it's in your home your business or your car.
Second, we will build on our leadership in business-critical computing. This will enable us to accelerate both new and existing technologies into industry standard platforms and to deliver even more scalable and reliable systems.
Third, we will lead in delivering global service and support. This will give our customers a single point of accountability as well as a lower total cost of ownership and reduced risk.
Fourth, we will focus on solutions that build on ourleadership in enterprise platforms our expertise in key markets our service capabilities and our partnerships with industry-leading companies.
And finally, we will build even stronger relationships with you, our customers. I hope you will look at Compaq not only as a computing company, but as a strategic partner whose mission is to give you what you need when you need it and how you want it, at the lowest total cost.
Welcome to the new world of computing.
Thank you.
