September Blackmore Report

Pleased to send you last months Blackmore report.

Regards,
Peter

< [Compaq Confidential - Internal Use Only]
< To: Worldwide Sales & Services team
<
< Another month and another quarter are about to close, and a very sincere
< 'thank you' for all your great work in the quarter. There has been
< tremendous activity, and September has been filled with headlines about
< new products, new partnerships, new wins, and earlier this week, the
< launch of our new Compaq brand campaign.
<
< This week the senior management team, with the support of many Compaq
< managers, met in San Francisco with more than 100 industry analysts from
< North America, Europe and Asia Pacific where we communicated our vision
< for the future and Compaq's strategy including what we see as the fastest
< growing opportunity around the "edge of the network." This builds on the
< strategy we launched last November and gives great examples of how we are
< taking leadership in the next generation of e-business requirements driven
< by the growth of both the Internet and wireless.
<
< In addition to the keynote presentations, there were many breakout
< sessions plus informal group and one-on-one discussions. The analysts
< commented that the Compaq team was energized, upbeat and very focused on
< where we are going. On October 12, we will have a worldwide satellite
< communication of the Compaq strategy to all employees. I would like the
< whole Worldwide Sales & Services team to really understand the
< presentations and quickly become expert in conveying our story to every
< one of our customers and partners throughout the world. The wins and
< customer partnerships we highlight every month in this report are evidence
< of customers' confidence in Compaq, and I have no doubt that this will
< only increase as we become united in articulating the elements of our
< strategy. You will be hearing more about the communications and training
< efforts around our strategy over the next few weeks. Until then, I
< encourage you to read the material and presentations posted on Inline at
< http://inline.compaq.com/strategy/usad/index.asp.
<
< During my travels this month I met with many of our employees, customers
< and partners in a number of EMEA operations including Italy, France,
< Switzerland, Germany, Denmark, Norway, Sweden, Netherlands and UK. It was
< good to see the whole of Europe, Middle East and Africa getting back to
< growth mode again with clear evidence of new drive and energy across the
< region.
<
< As well as meeting many customers and partners and participating in
< country reviews, I also was able to support the Compaq World Soccer 2000
< competition that was hosted in Munich. This is a great tournament - hotly
< contested each year, and we had a record of 24 men's teams and 11 women's
< teams from Australia, Japan, USA, Latin America and most European and BDG
< countries. Congratulations to Latin America who won both the men's and
< women's events!
<
< Our largest wins this month
< Southwestern Bell Corp - Compaq is now the desktop and server standards
< for SBC - Dell is out! The $250M, 3-year deal will involve some 90,000
< desktops and 3,000 servers. SBC is one of the world's largest
< telecommunications firms, which owns brands including Southwestern Bell,
< Ameritech, Cellular One and Prodigy Communications.
< http://newscpq1.inline.cpqcorp.net/article.cfm?storyid=1034
< Cable & Wireless, one of Compaq's global alliance partners, has selected
< Compaq Global Services to provide all Customer Care and Help Desk services
< for its new ASP (application service provider) venture, Cable & Wireless
< a-Services. The contract is expected to generate more than $100 million in
< Compaq revenue over five years.
< http://newscpq1.inline.cpqcorp.net/article.cfm?storyid=1067
< Fiat - $31M Customer Services contract over IBM, HP, Sun and
< Wang/Getronics to manage all of Fiat's service activities providing a
< multi-vendor maintenance contract as well as optional value-added services
< including software, managed services and business critical.
< UMC - $20M CIM project for one of the first 300mm Wafer Foundries in the
< world, which will lead to Compaq providing the professional services to
< all future 300mm Fabs at UMC.
< Salomon Smith Barney - $20M project to provide disposal services,
< implementation services asset management, and a support contract to roll
< out 22,000 desktops and 500 servers
<
< Huge success with Bertelsmann AG
< In another example of a great partnership - Bertelsmann, which is one of
< the largest media houses in the world, this month, announced its plan to
< provide each of its 75,000 employees with his/her own private Internet-PC.
< The goal of the program, known as "Alle ins Netz," which means "Everyone
< to the Net," is to ensure all of its employees and their families have
< access to the new media, worldwide resources and information. Compaq was
< selected the exclusive hardware and services partner - a win valued at
< $40M - because of our ability to ensure consistent worldwide products and
< services.
< Employees can choose either a Deskpro EX desktop, including a S710
< monitor, or an Armada E500 notebook. All systems are offered with Windows
< 98 and a large package of application software. The rollout, which
< includes Bertelsmann's 17,000 employees in the U.S., has already started
< outside the company's headquarters in Germany.
< Dublin Technical Customer Support Center (TCSC) brings home the gold
< Most people have been tuning into the Olympics in Sydney nightly, but on
< September 19 all eyes were on Birmingham, UK, where the 5th annual
< European Call Center of the Year Awards were held. Out of eight awards
< presented, the Dublin TCSC brought home gold medals in two categories:
< Best Call Center Design and Best Call Center Training. More than 180 call
< centers from across Europe competed for the prestigious awards. In July,
< the TCSC was selected one of 30 finalists, and a panel of judges visited
< the TCSC to see first-hand what Compaq does on a daily basis. The gold
< medals show that Compaq Customer Services is at the top of the industry
< and has a lot to be proud of. This is a tremendous accomplishment for
< everyone in the TCSC, but particular thanks and appreciation go to the
< Facilities Team and the Training Team for their dedication and effort.
< Congratulations!!
<
< Compaq Financial Services opens new branch, books sales
< Already serving more than 90% of our key markets, Compaq Financial
< Services (CFS) continues to extend its global reach, recently opening a
< new branch in Israel. The move is designed to provide Compaq-branded
< financing and services to one of the world's fastest-growing markets for
< startup technology companies. CFS also recorded a couple of tremendous
< wins, including a $45M server contract with South Korean Internet company
< Thrunet and online broker E*Trade for a large installation of AlphaServer
< GS320 servers.
<
< Thanks for your outstanding participation in the VOW survey
< Yvonne Jackson's recent communication of the VOW participation rates
< touted an 81% participation rate company wide, compared to 70% last year.
< I'm very proud to report that the Worldwide Sales & Services participation
< rate was 80%, equaling 34,747 responses. This represents 63% of the
< corporation's 55,300 responses. The coming month is when the real work
< begins. In late October, all people managers will begin receiving their
< survey results and be trained on analyzing the data. Then your mangers
< will be plan feedback sessions with you. These meetings will involve the
< sharing of the survey results, action planning around the major
< improvement needs, and the establishment of Process Improvement Teams.
< I look forward to seeing your process improvement efforts, for it is your
< involvement on these teams that makes Compaq a better place to work, which
< in turn, drives up our stock value!
<
< Worldwide sales portal coming
< As part of a continuing effort to reduce administrative duties for Compaq
< salespeople, provide better training and more appropriate information
< about our products and services, our Worldwide Selling Effectiveness Team
< is testing several initiatives, including sales training, an end-to-end
< selling and marketing process and a worldwide sales portal. The portal
< will provide a single Web interface, giving salespeople the information,
< training and tools tailored to the job, the customer segment and the
< GEO/country/region. The goal is to have a worldwide portal pilot by the
< end of Q4.
<
< Avaya announced international relationship with Compaq
< Avaya, the former Enterprise Networks Group of Lucent Technologies being
< spun off at the end of this month, recently announced a three-year
< business relationship with Compaq, through which we will install and
< support Avaya's DEFINITYc business communications systems - and
< applications such as messaging and customer relationship management -
< internationally for multi-national and non-U.S. customers. The
< relationship will complement Avaya's existing worldwide service
< operations.
<
< This non-exclusive subcontracting arrangement is already under way in
< Spain and Italy with plans to expand to Germany, Switzerland and the UK
< later this month. The two companies intend to expand the arrangement to
< other countries and regions and other Avaya products in the future.
< Compaq technicians will train at Avaya's Service Centers in Europe, as
< well as side by side with Avaya's own international services force. They
< will then provide Avaya's customers with installation and on-site support
< services.
<
< Winning in the e-government space
< E-government involves the electronic delivery of services to citizens and
< business communities for the purpose of achieving operational excellence
< and improving the "experience" of government. As the foremost solution
< provider to the public sector, Compaq leads the industry in the design and
< implementation of e-government applications. Compaq teams are engaged in
< delivering e-government solutions and services in the UK, Ireland, Norway,
< Austria, France, India, China, Singapore, Australia, Canada and in
< multiple sites across the US. For example, we recently won a $5M contract
< with the Defence Housing Authority (DHA) in Australia, which provides
< housing services to the Australian Department of Defence. They manage a
< housing pool of approximately 23,000 houses plus live-in accommodation on
< bases. Compaq services are aimed at making DHA an e-business via
< implementation of CRM and online operations.
<
< Compaq to help launch first B2B marketplace to Israel
< Commerce One, Inc., the leader provider ofin global business-to-business
< e-commerce solutions for business, this month announced the creation of
< the leading global Business-to-Business Marketplace in Israel with Bank
< Hapoalim, Israel global financial leader, Compaq Israel, The Israel Corp.,
< Internet Gold and Ofek Newworld. The Israeli MarketSite is expected to be
< connected to the Commerce One Global Trading Web, the world's largest B2B
< trading community. Comprised of many open e-marketplaces, the Global
< Trading Web provides economies of scale for buying organizations,
< suppliers and service providers worldwide and is anticipated to be of
< significant importance to companies in Israel. The new company formed by
< the consortium members is anticipated to begin operating the e-marketplace
< in the fourth quarter of 2000. The e-marketplace is expected to be fully
< operational by the first quarter of 2001, with fully localized content.
<
< Consumer update
< * Compaq maintained its worldwide leadership in the consumer market
< segment in 2Q with 11.5% market share, according to IDC.
< * Presario portable PCs maintained their No. 1 U.S. retail sales share
< in July for the 23rd consecutive month, with 41% share, according to NPD
< Intelect.
< * Presario desktop PCs recaptured the No. 1 U.S. retail sales spot in
< July with 41% share, according to NPD Intelect.
< * Business Week's Stephen Wildstrom called Compaq's iPaq Home Internet
< Appliance "a breakthrough" while PC Magazine gave it a 5 Star Rating,
< citing the device is "so simple to install and use that you can widely
< recommend it."
< * Consumer's first foray into television home shopping was a huge
< success when Compaq sold 7,900 Presario units on QVC recently. Compaq set
< a record for the channel's highest revenue produced during an off-holiday
< "Today's Special Value."
< *
< *
< *
< *
<
<
<
< Compaq to host "global solutions" event
< Technical experts from customers across the world flew into Heathrow
< Airport, London, for the one-day, Compaq-sponsored event called "Managing
< Global IT in the Information Age." The September 28 event focused on the
< technology challenges for executing business on a global basic and what
< that means for IT.
<
< News from Business Critical Server Group
< New benchmark results - The AlphaServer GS320 system with Tru64 UNIX has
< taken the lead over HP and IBM in the 300 GB TPC-H benchmark for
< RISC-based systems. This result underscores the new AlphaServer GS series'
< superiority in business intelligence and outstanding ability to perform
< complex queries in real time. And on September 7, Compaq and Oracle
< submitted TPC-C benchmark results showing that the Compaq AlphaServer
< GS320 system running Tru64 UNIX V.5.1 is the fastest single-system Oracle
< engine. Compaq and Oracle exceeded all other vendors' results, proving
< that the AlphaServer GS platform offers unbeatable price/performance for
< the most demanding transaction workloads and e-commerce applications.
<
< Positioned for growth in 3G wireless - The value of our experience and
< leadership in wireless solutions was validated by Motorola's recent
< decision to include Compaq's Home Location Register (HLR) solution on the
< NonStop Himalaya(tm) platform as one of the critical products within its
< 3G, or third-generation, infrastructure plans. On September 12, we jointly
< announced an expanded OEM agreement in which our HLR solution, which
< already supports nearly 50 million subscribers, will be included in
< Motorola's wireless solutions to offer voice and high-speed wireless
< Internet services simultaneously on an integrated network. This is
< significant because it marks Compaq's inroad into 3G wireless, positioning
< us for growth in this rapidly growing area of the industry.
<
< Oracle field engagement - In early August, more than 200 Alpha sales,
< marketing, and technical field specialists in North America met with
< Oracle management and were trained on the Oracle e-business product suite
< and market strategy. This training and collaboration is rolling out in
< each geographic region.
<
< Headlines from ISSG
< The Industry Standard Server Group had top honors and pride of place at
< the launch of Microsoft .NET on September 26. We demonstrated the Windows
< 2000 Datacenter software running on a ML770 32-way ProLiant, front-ended
< with 42 ProLiant DL360 servers and a StorageWorks EMA 12000 Storage Array.
< The application demonstrated was an Internet voting application from
< Election.com simulating 200 million votes being processed in a 15-hour
< timeframe. Impressive stuff!! Another key customer, Home Shopping
< Network, showed how their e-commerce application has outstanding
< performance and significantly lower costs with clustered 8-way ProLiant
< 8500 system. As a further commitment, we announced that Compaq Global
< Services will train and certify 1,000 consultants on Microsoft .NET.
<
< On the same day, we announced a partnership with Andersen Consulting to
< bring large-scale applications to the Microsoft / Compaq platforms. We
< also announced a strategic alliance with Commerce One to drive mass
< adoption and use of B2B commerce solutions through bundled solutions that
< simplify access and reduce cost of entry.
<
< Recent ISSG product announcements included two Quick Install cluster kits
< that offer one-hour set up for installing UnixWare-based clusters from
< start to finish. These kits enable customers to install all the software
< necessary to run a ProLiant Cluster for SCO UnixWare 7 from a CD and are
< already configured for immediate cluster boot, including the SCO UnixWare
< and UnixWare NonStop(tm) Clusters media. The current Quick Install images
< are specific to the ProLiant ML330 and CL380 clusters.
<
< Competitive information - In the last few weeks, several papers on the
< ProLiant ML330, ML350, ML370, DL380, ML530, ML570 and Compaq's Remote
< Insight Lights-Out have been added to the competitive Website.
< http://inline.compaq.com/pg/ecg/crossdiv/competitive/index.asp
<
< How 'bout that ML570! - The newest benchmark results for the ProLiant
< ML570 are very impressive, ranking it as the first server to break the
< $10/tpmC record!
< http://www.ideasinternational.com/benchmark/tpc/tpcc.html. The ML570
< server achieved the No. 1 ranking for TPC-C results by price/performance
< across all server platforms achieving 20,207.20 transactions per minute
< (tpmC) at a record low of $9.99/tpmC.
< http://www.compaq.com/products/servers/benchmarks/index.html
<
< Honoring top sales performers
< As we approach Q4, I want to remind the entire sales force about the
< recognition awaiting our top sales performers for the year 2000. First,
< the Compaq Pinnacle Club recognizes sales professionals who achieve 100
< percent of their goals for the year. Second, our GoldQuest Recognition
< Program celebrates the success of the top 8 percent of our sales force, at
< an event held at the five-star ANA and Regent Hotels in Sydney, Australia.
< This will be an event to remember! Here's wishing you the best of luck in
< reaching your Compaq Pinnacle Club and GoldQuest goals!
<
< Storage center opens
< Last month we opened the Enterprise Storage Customer Center, a new
< 22,000-square foot facility located in Colorado Springs, Colo., that will
< house our most advanced lab for testing and qualifying network storage
< interoperability.
< http://newscpq1.inline.cpqcorp.net/article.cfm?storyid=975. The facility
< will support enterprise storage initiatives such as developing Open SAN
< technology and the recently announced alliance with IBM.
< http://newscpq1.inline.cpqcorp.net/article.cfm?storyid=837. Also, our
< alliance with NaviSite Inc. has been formalized. NaviSite is a provider
< of managed application hosting services, delivering managed storage
< solutions for customers with information-intensive needs.
<
< Citibank team earns praise
< Congratulations to our entire Citibank account team, which recently
< knocked out both IBM and Sun to record our first AlphaServer GS series,
< win for a critical business function within the Global Consumer Business.
< In addition, a letter from a Citicorp representative to Compaq's Say-haur
< Leong calls the companies' relationship "one of its best vendor
< experiences." The letter went on to say, "We are extremely appreciative of
< the extraordinary support we have received from your team over the last
< four years ... We look forward to working with your team on a broader
< basis ... Please congratulate your team for having done a really
< outstanding job so far."
<
< Agent program update
< Since its implementation in early August, the Compaq Agent Program in
< North America has authorized more than 600 new agents. Between 70-100
< calls per day are being received from agents who want more information
< about the program and details on how to get started. The Compaq Agent
< Program enables partners to focus on high-margin, value-added services in
< a shrinking hardware margin environment while providing a choice between
< traditional buy/sell and agent models. All partners are eligible to
< participate.
<
< Wins Around the World
< Because you do such a great job of bringing in the wins, the list each
< month just keeps getting longer and longer. That's good - but I don't
< want the Blackmore Report to get so long that you don't read it! So,
< beginning this month, I'm going to highlight the key wins in the report
< and point to the complete list of Wins Around the World on Inline. Please
< continue to read about the hundreds of great wins that come in every
< month. They're not only a great tribute to your abilities and commitment
< to Compaq, but they're also the real evidence to the outside world that
< Compaq is a great company, providing leading solutions to all our
< customers. http://inline.compaq.com/wwss/wins/worldwins.asp.
<
< Many thanks for your hard work and outstanding efforts this month.
<
< Regards,
< Peter