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HP-Compaq May Never Happen

After Hewlett-Packard announced its hope to merge with Compaq, astute observers (I am lucky to be one) asked what value, if any, the proposed union would bring. I felt it was a merger based entirely on negative reasons and here's why: Because the two companies' businesses are so similar, sure, they could cut costs and boost market share. But by putting the two pieces together, you end up with a huge, layoff-inducing oaf of a company. Shareholders apparently agree and many have been arguing against the plan. Now some of the heirs to the Hewlett and the Packard estates are speaking out against it, and they have a lot more at stake than I do.

Compaq has generally made a mess of the companies it's bought. And the result is a $30-some-odd-billion corporation without focus. Just look at how many operating systems Compaq is trying to support. And now it wants to add the $40-billion a year HP to the mix? Not good.

Comdex at Half the Size

Reports from Comdex have it that attendance is down, way down. A pal of mine estimates it's down 50 to 60 percent, and he's been going to the show for twenty years! But despite the low turnout, Bill Gates flew in to do his annual keynote. I don't even think they ask him any more, he just shows up.

This year, besides talking about the new Xbox game machine, Gates showed off prototypes of the Tablet PC, a portable device with wireless connectivity that runs XP and full versions of desktop-style applications. I think this is a huge breakthrough for the wireless world. In order to support handhelds, IT has to figure out a way to translate desktop apps into smaller, lower-resolution screens. This is a lot of work, and the end result usually sacrifices features or usability. A tablet that runs a full OS and full versions of applications solves that problem.

And with everyone walking around with wireless-ready devices, the service providers will have more incentive to broaden coverage and boost speeds. Thanks Bill.

Larry Makes the Scene

Larry Ellison wants what Bill Gates already has. He wants to be the richest person in the world, and as much as he complains about Gates' power, Larry also wants to rule a market or two with an iron fist. And one of the markets Ellison wants, Microsoft very nearly owns.