Compaq names new leader for high-end servers

Howard Elias seized the reins of Compaq Computer Corp.'s (cpq) high-end server group Tuesday, replacing Bill Heil as the executive leading the effort to compensate for shaky PC sales.

Elias, who previously led Compaq's storage group, now is general manager of Compaq's business-critical server group. These computers--with their power, lofty price tags and accompanying services revenue--are a key part of Compaq's years-long effort to expand beyond its roots as a PC company into an all-purpose computing giant such as IBM.

The effort to boost high-end hardware sales is critical in light of lagging PC sales. Faltering PC sales led Compaq to warn in December of lowered profit expectations.

Along with picking up PC revenue slack, Elias will inherit several sticky issues. Chief among them is dealing with Sun Microsystems' dominance in Unix servers, but he also will oversee the Alpha chip line, the solid but low-profile OpenVMS operating system, and the extremely demanding customers who buy Tandem Himalaya servers. -- Stephen Shankland, Special to ZDNet News