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last updated: 1/22/99 11:29 pm PST

 

Warning: Compaq is On the WWWarpath

(12/6/98)- Compaq purchased Digital Equipment Corporation, including
the company's rights to the one of the major search engines, AltaVista, a
site with one of the highest level of Web influence. But Compaq has not yet
used its rights to the search engine to raise its own Web influence to similar
levels. Visitors to this site, one of the two most popular searching tools on
the Internet, are unlikely to know Compaq is associated with AltaVista in
any fashion.
We consider this as a perfect example of a major computer company
that in searching for a better market presence, has failed to accumulate
Web presence.

(1/19/99)- In January of 1998, the Compaq Corporation purchased
Digital Equipment Corporation for $9.6 billion, creating one of the largest
computer companies worldwide. With this purchase, Compaq obtained a
vast resource of enterprise-related technology, as well as increased
research and development possibilities. What few media observers
mentioned was that Compaq had also obtained the rights to Digital's
top-rated search engine, Alta Vista, acclaimed as one of the top
five-visited sites on the Internet. Compaq too was quiet regarding this
acquired technology during 1998.

When we published our table on the top 100 computer companies and the
current state of Web Influence on December 6, 1998, Internet Valley
noted this lack of effort on the part of Compaq to utilize Alta Vista. In a
public scolding, Internet Valley wrote Compaq's failure as "a perfect
example of a major computer company that in searching for a better
market presence, has failed to accumulate Web presence."

By January 11, only three weeks after our publication, Compaq and the
national technology media announced that they plan to "make AltaVista the
leading guide for both information and e-commerce on the Internet." -
Yahoo! Business news (1/11/99)

Following this, shares of Compaq jumped nearly 10 percent on the news,
and the company's announced $220 million purchase of Shopping.com.

If that declaration and some of the preliminary movements in this direction,
including an increased use of the Alta Vista site, truly become Compaq's
long-term market strategy, we at Internet Valley can see enough reasons to
believe that it will become one of the strongest leaders of the Internet soon.

In brief conclusion: if taken in consideration that Compaq still has a
relatively low market capitalization to sales ratio and an increasing state of
Web influence, this company's stocks value will likely significantly increase
its ascent over the near future.

 

Compaq sat on Alta Vista for more than a year, and now the light bulb has gone off in their collective head. If you were the CEO of Compaq, how would you utilize this valuable tool?

Have ideas? Please share it with us.  

 

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