Compaq to buy Tandem in latest server purchase

Compaq Computer Corp. and Tandem Computers Inc. last week inked a multibilliondollar merger agreement the latest in a series of deals linking PC vendors to midrange and highend server manufacturers. Compaq the world's largest PC maker will pay $3 billion in stock to purchase Tandem a manufacturer

Compaq Computer Corp. and Tandem Computers Inc. last week inked a multibillion-dollar merger agreement the latest in a series of deals linking PC vendors to midrange and high-end server manufacturers.

Compaq the world's largest PC maker will pay $3 billion in stock to purchase Tandem a manufacturer of high-end servers designed for the on-line transaction processing market. Tandem will become a subsidiary of Compaq. The deal is scheduled to close in the third calendar quarter of this year.

In acquiring Tandem Compaq would be able to add enterprise-class servers to its handheld notebook desktop workstation and server product lines said Eckhard Pfeiffer president and chief executive officer of Compaq.

The broader product set would allow the company to rival such systems vendors as Digital Equipment Corp. Hewlett-Packard Co. IBM Corp. and Sun Microsystems Inc. industry observers said.

"Compaq is very clearly trying to push up from commodity PCs and PC servers to offer midrange and large-scale servers " said Brian Jeffery managing director of International Technology Group a Mountain View Calif. market research firm. "Give them a few years and they could be HP."

Tandem offers a range of server products. At the high end Tandem offers its Himalaya massively parallel servers which run reduced instruction-set computing processors and Tandem's NonStop operating system. FDC Technologies Inc. has been supplying Tandem's K20000 Himalaya servers on the company's Stock Point Logistics Integrated Communications Environment pact with the Navy.

Tandem however also has branched into servers employing Intel Corp.'s Pentium Pro chips and Microsoft Corp.'s Windows NT. Clusters of the company's S-series Windows NT servers have been demonstrated running up to 64 processors according to Jeffery. Tandem technology including its ServerNet clustering architecture could play a role in creating very large Windows NT server configurations Jeffery said.

In the federal market Compaq could provide Tandem with a channel for providing its server products. Compaq holds a General Services Administration schedule but also supplies a number of integrators and resellers on GSA and indefinite-delivery indefinite-quantity contracts. Compaq federal executives could not be reached for comment.

One in a Series of Deals

The pending Compaq merger follows by one week Gateway 2000 Inc.'s announcement of an agreement to acquire Advanced Logic Research Inc. Gateway 2000 the second-ranked GSA Schedule B/C player in fiscal 1996 would gain access to ALR's Intel server technology. ALR earlier this year became the first company to ship a six-way Pentium Pro server.

And in mid-June PC maker Micron Electronics Inc. agreed to acquire NetFrame Systems Inc. which manufactures high-end multiprocessor servers. Both companies market their products to federal agencies through the GSA schedule Micron products also are available on the Air Force's Desktop V contract.

"All three of these transactions are examples of successful companies trying to fill holes in their product lines " said Brian Klene executive vice president for sales and marketing at Micron. He said the buyers including Micron are responding to growth in the server end of the market.

"In the coming years the enterprise space will become attractive " Klene said. He said the acceptance of network computers Net PCs and other thin client devices will shift "capabilities and sophistication" from the client to the server.

"Getting into the server side of the market is going to be a good way to ensure that you stay in the game " said Payton Smith a research analyst with IDC Government.

NEXT STORY: Intercepts

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.