Compaq to get out of networking

So much for Pfeiffer's vision thing

A US report has suggested that Compaq is set to withdraw from the networking market. If true, that is likely to be a very costly mistake.

Yesterday we reported that Compaq was quietly axing different Alpha units over the Christmas period. (Story: Compaq no Father Christmas as Alpha layoffs rise)

According to the report, in the Wall Street Journal, Compaq will dispense with manufacturing and axe engineering groups. At the same time it will move any networking products it retains into a stand alone unit.

Over the last three years, Compaq has made a number of acquisitions of networking companies including Microcom and Thomas Conrad. The company's CEO, Eckhard Pfeiffer, has consistently stressed that networking is key to its strategy. ®