Message-ID: <12560137.1075840214584.JavaMail.evans@thyme> Date: Tue, 10 Oct 2000 08:24:00 -0700 (PDT) From: peter.blackmore@compaq.com To: michael.capellas@compaq.com, ben@brosen.com, babbio@bellatlantic.com, lynnj@iname.com, cdavis@onisystems.com, ted.enloe@compaq.com, ghh@telcordia.com, klay@enron.com, kjewett@kpcb.com, kenroman@worldnet.att.net, lucie@jhmedia.com Subject: September Blackmore Report Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "Blackmore, Peter" X-To: "Capellas, Michael D." , "'ben@brosen.com'" , "'babbio@bellatlantic.com'" , "'lynnj@iname.com'" , "'Cdavis@onisystems.com'" , "Enloe, Ted" , "'ghh@telcordia.com'" , "'klay@enron.com'" , "'kjewett@kpcb.com'" , "'kenroman@worldnet.att.net'" , "'lucie@jhmedia.com'" X-cc: X-bcc: X-Folder: \Kenneth_Lay_Dec2000\Notes Folders\All documents X-Origin: LAY-K X-FileName: klay.nsf Pleased to send you last months Blackmore report. Regards, Peter > [Compaq Confidential - Internal Use Only] > To: Worldwide Sales & Services team > > Another month and another quarter are about to close, and a very sincere > 'thank you' for all your great work in the quarter. There has been > tremendous activity, and September has been filled with headlines about > new products, new partnerships, new wins, and earlier this week, the > launch of our new Compaq brand campaign. > > This week the senior management team, with the support of many Compaq > managers, met in San Francisco with more than 100 industry analysts from > North America, Europe and Asia Pacific where we communicated our vision > for the future and Compaq's strategy including what we see as the fastest > growing opportunity around the "edge of the network." This builds on the > strategy we launched last November and gives great examples of how we are > taking leadership in the next generation of e-business requirements driven > by the growth of both the Internet and wireless. > > In addition to the keynote presentations, there were many breakout > sessions plus informal group and one-on-one discussions. The analysts > commented that the Compaq team was energized, upbeat and very focused on > where we are going. On October 12, we will have a worldwide satellite > communication of the Compaq strategy to all employees. I would like the > whole Worldwide Sales & Services team to really understand the > presentations and quickly become expert in conveying our story to every > one of our customers and partners throughout the world. The wins and > customer partnerships we highlight every month in this report are evidence > of customers' confidence in Compaq, and I have no doubt that this will > only increase as we become united in articulating the elements of our > strategy. You will be hearing more about the communications and training > efforts around our strategy over the next few weeks. Until then, I > encourage you to read the material and presentations posted on Inline at > http://inline.compaq.com/strategy/usad/index.asp. > > During my travels this month I met with many of our employees, customers > and partners in a number of EMEA operations including Italy, France, > Switzerland, Germany, Denmark, Norway, Sweden, Netherlands and UK. It was > good to see the whole of Europe, Middle East and Africa getting back to > growth mode again with clear evidence of new drive and energy across the > region. > > As well as meeting many customers and partners and participating in > country reviews, I also was able to support the Compaq World Soccer 2000 > competition that was hosted in Munich. This is a great tournament - hotly > contested each year, and we had a record of 24 men's teams and 11 women's > teams from Australia, Japan, USA, Latin America and most European and BDG > countries. Congratulations to Latin America who won both the men's and > women's events! > > Our largest wins this month > Southwestern Bell Corp - Compaq is now the desktop and server standards > for SBC - Dell is out! The $250M, 3-year deal will involve some 90,000 > desktops and 3,000 servers. SBC is one of the world's largest > telecommunications firms, which owns brands including Southwestern Bell, > Ameritech, Cellular One and Prodigy Communications. > http://newscpq1.inline.cpqcorp.net/article.cfm?storyid=1034 > Cable & Wireless, one of Compaq's global alliance partners, has selected > Compaq Global Services to provide all Customer Care and Help Desk services > for its new ASP (application service provider) venture, Cable & Wireless > a-Services. The contract is expected to generate more than $100 million in > Compaq revenue over five years. > http://newscpq1.inline.cpqcorp.net/article.cfm?storyid=1067 > Fiat - $31M Customer Services contract over IBM, HP, Sun and > Wang/Getronics to manage all of Fiat's service activities providing a > multi-vendor maintenance contract as well as optional value-added services > including software, managed services and business critical. > UMC - $20M CIM project for one of the first 300mm Wafer Foundries in the > world, which will lead to Compaq providing the professional services to > all future 300mm Fabs at UMC. > Salomon Smith Barney - $20M project to provide disposal services, > implementation services asset management, and a support contract to roll > out 22,000 desktops and 500 servers > > Huge success with Bertelsmann AG > In another example of a great partnership - Bertelsmann, which is one of > the largest media houses in the world, this month, announced its plan to > provide each of its 75,000 employees with his/her own private Internet-PC. > The goal of the program, known as "Alle ins Netz," which means "Everyone > to the Net," is to ensure all of its employees and their families have > access to the new media, worldwide resources and information. Compaq was > selected the exclusive hardware and services partner - a win valued at > $40M - because of our ability to ensure consistent worldwide products and > services. > Employees can choose either a Deskpro EX desktop, including a S710 > monitor, or an Armada E500 notebook. All systems are offered with Windows > 98 and a large package of application software. The rollout, which > includes Bertelsmann's 17,000 employees in the U.S., has already started > outside the company's headquarters in Germany. > Dublin Technical Customer Support Center (TCSC) brings home the gold > Most people have been tuning into the Olympics in Sydney nightly, but on > September 19 all eyes were on Birmingham, UK, where the 5th annual > European Call Center of the Year Awards were held. Out of eight awards > presented, the Dublin TCSC brought home gold medals in two categories: > Best Call Center Design and Best Call Center Training. More than 180 call > centers from across Europe competed for the prestigious awards. In July, > the TCSC was selected one of 30 finalists, and a panel of judges visited > the TCSC to see first-hand what Compaq does on a daily basis. The gold > medals show that Compaq Customer Services is at the top of the industry > and has a lot to be proud of. This is a tremendous accomplishment for > everyone in the TCSC, but particular thanks and appreciation go to the > Facilities Team and the Training Team for their dedication and effort. > Congratulations!! > > Compaq Financial Services opens new branch, books sales > Already serving more than 90% of our key markets, Compaq Financial > Services (CFS) continues to extend its global reach, recently opening a > new branch in Israel. The move is designed to provide Compaq-branded > financing and services to one of the world's fastest-growing markets for > startup technology companies. CFS also recorded a couple of tremendous > wins, including a $45M server contract with South Korean Internet company > Thrunet and online broker E*Trade for a large installation of AlphaServer > GS320 servers. > > Thanks for your outstanding participation in the VOW survey > Yvonne Jackson's recent communication of the VOW participation rates > touted an 81% participation rate company wide, compared to 70% last year. > I'm very proud to report that the Worldwide Sales & Services participation > rate was 80%, equaling 34,747 responses. This represents 63% of the > corporation's 55,300 responses. The coming month is when the real work > begins. In late October, all people managers will begin receiving their > survey results and be trained on analyzing the data. Then your mangers > will be plan feedback sessions with you. These meetings will involve the > sharing of the survey results, action planning around the major > improvement needs, and the establishment of Process Improvement Teams. > I look forward to seeing your process improvement efforts, for it is your > involvement on these teams that makes Compaq a better place to work, which > in turn, drives up our stock value! > > Worldwide sales portal coming > As part of a continuing effort to reduce administrative duties for Compaq > salespeople, provide better training and more appropriate information > about our products and services, our Worldwide Selling Effectiveness Team > is testing several initiatives, including sales training, an end-to-end > selling and marketing process and a worldwide sales portal. The portal > will provide a single Web interface, giving salespeople the information, > training and tools tailored to the job, the customer segment and the > GEO/country/region. The goal is to have a worldwide portal pilot by the > end of Q4. > > Avaya announced international relationship with Compaq > Avaya, the former Enterprise Networks Group of Lucent Technologies being > spun off at the end of this month, recently announced a three-year > business relationship with Compaq, through which we will install and > support Avaya's DEFINITYc business communications systems - and > applications such as messaging and customer relationship management - > internationally for multi-national and non-U.S. customers. The > relationship will complement Avaya's existing worldwide service > operations. > > This non-exclusive subcontracting arrangement is already under way in > Spain and Italy with plans to expand to Germany, Switzerland and the UK > later this month. The two companies intend to expand the arrangement to > other countries and regions and other Avaya products in the future. > Compaq technicians will train at Avaya's Service Centers in Europe, as > well as side by side with Avaya's own international services force. They > will then provide Avaya's customers with installation and on-site support > services. > > Winning in the e-government space > E-government involves the electronic delivery of services to citizens and > business communities for the purpose of achieving operational excellence > and improving the "experience" of government. As the foremost solution > provider to the public sector, Compaq leads the industry in the design and > implementation of e-government applications. Compaq teams are engaged in > delivering e-government solutions and services in the UK, Ireland, Norway, > Austria, France, India, China, Singapore, Australia, Canada and in > multiple sites across the US. For example, we recently won a $5M contract > with the Defence Housing Authority (DHA) in Australia, which provides > housing services to the Australian Department of Defence. They manage a > housing pool of approximately 23,000 houses plus live-in accommodation on > bases. Compaq services are aimed at making DHA an e-business via > implementation of CRM and online operations. > > Compaq to help launch first B2B marketplace to Israel > Commerce One, Inc., the leader provider ofin global business-to-business > e-commerce solutions for business, this month announced the creation of > the leading global Business-to-Business Marketplace in Israel with Bank > Hapoalim, Israel global financial leader, Compaq Israel, The Israel Corp., > Internet Gold and Ofek Newworld. The Israeli MarketSite is expected to be > connected to the Commerce One Global Trading Web, the world's largest B2B > trading community. Comprised of many open e-marketplaces, the Global > Trading Web provides economies of scale for buying organizations, > suppliers and service providers worldwide and is anticipated to be of > significant importance to companies in Israel. The new company formed by > the consortium members is anticipated to begin operating the e-marketplace > in the fourth quarter of 2000. The e-marketplace is expected to be fully > operational by the first quarter of 2001, with fully localized content. > > Consumer update > * Compaq maintained its worldwide leadership in the consumer market > segment in 2Q with 11.5% market share, according to IDC. > * Presario portable PCs maintained their No. 1 U.S. retail sales share > in July for the 23rd consecutive month, with 41% share, according to NPD > Intelect. > * Presario desktop PCs recaptured the No. 1 U.S. retail sales spot in > July with 41% share, according to NPD Intelect. > * Business Week's Stephen Wildstrom called Compaq's iPaq Home Internet > Appliance "a breakthrough" while PC Magazine gave it a 5 Star Rating, > citing the device is "so simple to install and use that you can widely > recommend it." > * Consumer's first foray into television home shopping was a huge > success when Compaq sold 7,900 Presario units on QVC recently. Compaq set > a record for the channel's highest revenue produced during an off-holiday > "Today's Special Value." > * > * > * > * > > > > Compaq to host "global solutions" event > Technical experts from customers across the world flew into Heathrow > Airport, London, for the one-day, Compaq-sponsored event called "Managing > Global IT in the Information Age." The September 28 event focused on the > technology challenges for executing business on a global basic and what > that means for IT. > > News from Business Critical Server Group > New benchmark results - The AlphaServer GS320 system with Tru64 UNIX has > taken the lead over HP and IBM in the 300 GB TPC-H benchmark for > RISC-based systems. This result underscores the new AlphaServer GS series' > superiority in business intelligence and outstanding ability to perform > complex queries in real time. And on September 7, Compaq and Oracle > submitted TPC-C benchmark results showing that the Compaq AlphaServer > GS320 system running Tru64 UNIX V.5.1 is the fastest single-system Oracle > engine. Compaq and Oracle exceeded all other vendors' results, proving > that the AlphaServer GS platform offers unbeatable price/performance for > the most demanding transaction workloads and e-commerce applications. > > Positioned for growth in 3G wireless - The value of our experience and > leadership in wireless solutions was validated by Motorola's recent > decision to include Compaq's Home Location Register (HLR) solution on the > NonStop Himalaya(tm) platform as one of the critical products within its > 3G, or third-generation, infrastructure plans. On September 12, we jointly > announced an expanded OEM agreement in which our HLR solution, which > already supports nearly 50 million subscribers, will be included in > Motorola's wireless solutions to offer voice and high-speed wireless > Internet services simultaneously on an integrated network. This is > significant because it marks Compaq's inroad into 3G wireless, positioning > us for growth in this rapidly growing area of the industry. > > Oracle field engagement - In early August, more than 200 Alpha sales, > marketing, and technical field specialists in North America met with > Oracle management and were trained on the Oracle e-business product suite > and market strategy. This training and collaboration is rolling out in > each geographic region. > > Headlines from ISSG > The Industry Standard Server Group had top honors and pride of place at > the launch of Microsoft .NET on September 26. We demonstrated the Windows > 2000 Datacenter software running on a ML770 32-way ProLiant, front-ended > with 42 ProLiant DL360 servers and a StorageWorks EMA 12000 Storage Array. > The application demonstrated was an Internet voting application from > Election.com simulating 200 million votes being processed in a 15-hour > timeframe. Impressive stuff!! Another key customer, Home Shopping > Network, showed how their e-commerce application has outstanding > performance and significantly lower costs with clustered 8-way ProLiant > 8500 system. As a further commitment, we announced that Compaq Global > Services will train and certify 1,000 consultants on Microsoft .NET. > > On the same day, we announced a partnership with Andersen Consulting to > bring large-scale applications to the Microsoft / Compaq platforms. We > also announced a strategic alliance with Commerce One to drive mass > adoption and use of B2B commerce solutions through bundled solutions that > simplify access and reduce cost of entry. > > Recent ISSG product announcements included two Quick Install cluster kits > that offer one-hour set up for installing UnixWare-based clusters from > start to finish. These kits enable customers to install all the software > necessary to run a ProLiant Cluster for SCO UnixWare 7 from a CD and are > already configured for immediate cluster boot, including the SCO UnixWare > and UnixWare NonStop(tm) Clusters media. The current Quick Install images > are specific to the ProLiant ML330 and CL380 clusters. > > Competitive information - In the last few weeks, several papers on the > ProLiant ML330, ML350, ML370, DL380, ML530, ML570 and Compaq's Remote > Insight Lights-Out have been added to the competitive Website. > http://inline.compaq.com/pg/ecg/crossdiv/competitive/index.asp > > How 'bout that ML570! - The newest benchmark results for the ProLiant > ML570 are very impressive, ranking it as the first server to break the > $10/tpmC record! > http://www.ideasinternational.com/benchmark/tpc/tpcc.html. The ML570 > server achieved the No. 1 ranking for TPC-C results by price/performance > across all server platforms achieving 20,207.20 transactions per minute > (tpmC) at a record low of $9.99/tpmC. > http://www.compaq.com/products/servers/benchmarks/index.html > > Honoring top sales performers > As we approach Q4, I want to remind the entire sales force about the > recognition awaiting our top sales performers for the year 2000. First, > the Compaq Pinnacle Club recognizes sales professionals who achieve 100 > percent of their goals for the year. Second, our GoldQuest Recognition > Program celebrates the success of the top 8 percent of our sales force, at > an event held at the five-star ANA and Regent Hotels in Sydney, Australia. > This will be an event to remember! Here's wishing you the best of luck in > reaching your Compaq Pinnacle Club and GoldQuest goals! > > Storage center opens > Last month we opened the Enterprise Storage Customer Center, a new > 22,000-square foot facility located in Colorado Springs, Colo., that will > house our most advanced lab for testing and qualifying network storage > interoperability. > http://newscpq1.inline.cpqcorp.net/article.cfm?storyid=975. The facility > will support enterprise storage initiatives such as developing Open SAN > technology and the recently announced alliance with IBM. > http://newscpq1.inline.cpqcorp.net/article.cfm?storyid=837. Also, our > alliance with NaviSite Inc. has been formalized. NaviSite is a provider > of managed application hosting services, delivering managed storage > solutions for customers with information-intensive needs. > > Citibank team earns praise > Congratulations to our entire Citibank account team, which recently > knocked out both IBM and Sun to record our first AlphaServer GS series, > win for a critical business function within the Global Consumer Business. > In addition, a letter from a Citicorp representative to Compaq's Say-haur > Leong calls the companies' relationship "one of its best vendor > experiences." The letter went on to say, "We are extremely appreciative of > the extraordinary support we have received from your team over the last > four years ... We look forward to working with your team on a broader > basis ... Please congratulate your team for having done a really > outstanding job so far." > > Agent program update > Since its implementation in early August, the Compaq Agent Program in > North America has authorized more than 600 new agents. Between 70-100 > calls per day are being received from agents who want more information > about the program and details on how to get started. The Compaq Agent > Program enables partners to focus on high-margin, value-added services in > a shrinking hardware margin environment while providing a choice between > traditional buy/sell and agent models. All partners are eligible to > participate. > > Wins Around the World > Because you do such a great job of bringing in the wins, the list each > month just keeps getting longer and longer. That's good - but I don't > want the Blackmore Report to get so long that you don't read it! So, > beginning this month, I'm going to highlight the key wins in the report > and point to the complete list of Wins Around the World on Inline. Please > continue to read about the hundreds of great wins that come in every > month. They're not only a great tribute to your abilities and commitment > to Compaq, but they're also the real evidence to the outside world that > Compaq is a great company, providing leading solutions to all our > customers. http://inline.compaq.com/wwss/wins/worldwins.asp. > > Many thanks for your hard work and outstanding efforts this month. > > Regards, > Peter