HP-Compaq Aftermath

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STEVEN BURKE

Can be reached at (781) 839-1221 or via e-mail at [email protected].

Richie, who built two successful businesses by partnering with what was once Digital Equipment Corp., watched his company's net profit drop from double digits to low single digits after Compaq acquired DEC. "It was a nightmare, an absolute nightmare," he recalled. "The first year was an awful lot of indecision from Compaq. . . . I don't think they ever truly did merge the Digital business in with the Compaq business."

And whereas DEC went out of its way to protect its solution provider partners, Compaq has competed with its partners, Richie said.

Richie, who made $3 million when he sold his first company, said he believes the days when a channel business can be built by teaming tightly with a single vendor may be gone. "It is difficult to be loyal to one manufacturer," he said. "Obviously, the manufacturers are not loyal to their partners." Richie said once he has completed HP training,Sequel Data is adding HP lines to its product mix, regardless of whether or not the merger is approved,he will likely add Sun Microsystems or IBM as a vendor partner as well.

If Richie was face to face with HP Chairman and CEO Carly Fiorina, he would "beg her to please not allow Compaq's business philosophy" to replace HP's enterprise solutions mindset.

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Whatever happens, though, Richie said he has built strong relationships with his accounts, and Sequel Data will be there to make things right,even if HP and Compaq drop the ball.

"We have been the stable force for our customers who have seen Digital Equipment and Compaq sales reps come and go," he said. "Customers are not stupid. They know manufacturers are in a state of constant change and flux. I have the same people with me I had 10 years ago."

As HP moves forward with its buyout of Compaq, it would be wise for both to remember that while vendors and their sales reps come and go, the one constant is the solution provider's tight relationship with its customers.

What do you think of the HP-Compaq deal? Let me know at (781) 839-1221 or [email protected].