Top Page
Site Map
News at a Glance Member Services AsiaBizTech Resources

Advanced Search

(Nikkei BP Group)

(No.1 High-Tech News Site in Japanese)

  • Compaq to Inherit Service Unit from Digital Japan
  • August 27, 1998 (TOKYO) -- Compaq Computer KK of Japan reportedly will complete its merger with Digital Equipment Corp. Japan as early as Oct. 1, and it will inherit Digital's service unit.
    Nikkei Computer's research shows there will be a new organizational alignment of the companies, with new management to be nominated at a general meeting of shareholders after the merger.

    The service unit of Digital Japan will remain unchanged as the system operations division and service operations division. Toshio Ueda and Satoshi Kawai, who have long been managing these two organizations, will respectively assume responsibilities of vice president and executive director of Compaq. The Compaq's division currently providing maintenance services will be integrated into the service operations division.

    Digital's service division, which has the longest history within Digital, started from a maintenance service of products. It has grown to do multi-vendor maintenance and system integration businesses. It is believed that Digital's service capability has a high presence in the market. Compaq Computer Corp. reportedly acquired Digital Equipment Corp. because Compaq wanted this service capability.

    In the sales division, all the sales people were already assigned their customers prior to the merger's completion. This is because the company had to protect its customer base from competitors trying to lure them away, an industry source said.

    Build-to-order personal computers will be put into practice, with cooperation of the order and inventory operations division and manufacturing operations division.

    The number of employees after the acquisition will total 3,600 people, 900 from Compaq and 2,700 from Digital. The company plans to cut 10 percent of its work force, according to the restructuring plan of the parent company in the United States.

    Digital Japan is now carrying out a retirement program for all employees, except engineers in the service division.

    Related story: Compaq Japan, DEC Japan to Merge Within This Year

    (Nikkei Computer)

    Copyright © 1997-98
    Nikkei BP BizTech, Inc.
    All Rights Reserved.
    Updated: Wed Aug 26 15:38:22 1998 PDT