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Compaq's Pfeiffer Wants "Internet Leadership"

On the day that Microsoft detailed its e-commerce strategy, Compaq CEO Eckhard Pfeiffer took up the Internet cudgel for his company while visiting Australia.

Speaking in Sydney, Pfeiffer showed great relish in predicting US$50 billion in revenues for Compaq in the year 2000, saying that this would be on the back of the vendor attaining "Internet leadership."

This would be achieved by Compaq "taking ownership of customer relations," Pfeiffer said, by building a corporate supply-chain extranet with its customers and using the compaq.com site as a purchasing tool.

This came on the same day as Microsoft announced it would be using its MSN.com site as part of a larger electronic commerce strategy.

When asked by australia.internet.com whether the projected IPO of its Alta Vista subsidiary indicated that Compaq did not understand Alta Vista's market, Pfeiffer chose to place Compaq not in the realm of Microsoft or Dell, but among the ranks of the Fortune 100.

"I would label it not that we don't understand the Internet--we understand it better than most companies. We have moved into the Internet territory before any major company that you can think of," he said.

Pfeiffer also commented on the tension between Compaq's existing channel relationships and its desire to sell PCs direct to the public via compaq.com.

"Consumers will be looking on the Compaq site for what we can deliver, so obviously we have to deliver," he said.

The Australian operations of Compaq reported revenues of US$930 million (AUS$1.5 billion) in 1998 as part of the global revenue figure of US31.2 billion (AUS$ 50.3 billion).



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