Compaq to 'cannibalise' core business for Internet

London, Feb 9th (Manila Bulletin) - Compaq Computer Corp. is willing to ''cannibalize'' its core business as it turns itself into an internet company, Senior Vice President Peter Blackmore told AFX News.

The company said in a presentation that it is repositioning itself using the slogan "the Nonstop Internet Company", focusing its efforts towards the development of infrastructural, consumer, corporate and retail internet applications.

"We're in a very enviable position in terms of the capabilities we have," Blackmore said. "We touch some very high growth parts of the markets, servers, and storage. We've got world-class professional services and we're targeting them at e-commerce, and we're very willing to transform the PC businesses into appliance businesses," he added.

The strategic realignment follows poor results last year, but Blackmore now believes the new management structure can drive the company to become an innovator in network development, rather than relying on existing product lines.

"It was a tough year last year," he said, adding that management changes were spurred last year by Compaq disappointing some financial expectations. "But we have the divisional structure within the three product groups, so you empower these divisions to be creative and generate new ideas and new concepts."