Compaq
CompaqLocational Implications of a Take-Over
-Compaq Computer Corporation will lead in today's economic geography conference. At Compaq we recognize the need to become a global leader in enterprise computing solutions. The acquisition of Digital Equipment Corporation, an American US-based designer and manufacturer of mini-computers will greatly strengthen value proposition to customers. We are committed to supporting these key customer relationships by investing in Digital's strategic assets, particularly its worldwide service organization, as well as it's 64-bit leadership with Alpha microprocessors, OpenVMS, Digital UNIX and Windows NT enterprise systems, open storage and software products. With the acquisition of Digital, we have transformed into a leader in key markets that will define computing in the next century.
To further extend our service to our valued customers, we have restructured and resized the former Digital Equipment Canada Limited into a configuration center. This was apart of Compaq's operation to consolidate manufacturing operation amongst its worldwide facilities.
The configuration center is necessary to integrate manufacturing operations into a single cohesive organization. The objective is to deliver 95 percent of all products anywhere in the world within five days or less.
The merge with Digital will create the largest network channel in the world delivering over 80 percent of its products and solutions to customers. Compaq's field resource will continue to complement the strong reseller channel, focusing on building enduring customer relationships worldwide.
Needless to say, the acquisition of Digital Equipment Corporation will complement Compaq as a world leader in manufacturing microcomputers. Our customers will benefit from the complementary strength of both companies. For example, together we will offer customers of enterprise Windows NT products and lifecycle services available in the market today.
The restructuring and resizing of the Kanata plant site will serve our customers more efficient. A total of 800 employees at Digital 's Kanata have been laid off. The layoff are the result of the merger and having excess capacity. We feel that the operation to convert Kanata plant site into a configuration center will benefit our company. Kanata has over 750 businesses with the advanced technology industry serving as the foundation. Configuration center will manufacture and ship personal computers directly to our customers. With the cluster of high technology businesses, we are able to complement our manufacturing operations in that kind of environment.
Ottawa is known as Silicon Valley North because of its emergence as a high-tech center. By locating in the Ottawa region, Compaq is able to feed of this high-tech sector. The success of the Ottawa area as a high-technology center may be attributed to several locational advantages. These advantages are accessibility to the federal government: a well-developed science and...
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