News release

European Businesses Offer Brighter Prospects for Wireless

Fifty-four percent of European companies are either currently evaluating, testing or implementing wireless solutions in their business, or plan to do so in the next two years, according to a survey by UK-based Research International, carried out in April this year. The findings suggest a more optimistic picture than the one painted in recent months by some market commentators in relation to the prospects for the wireless sector in Europe.

The research, which was commissioned by Compaq (NYSE: CPQ), surveyed 250 senior managers in France, Germany, Italy, Sweden, and the UK on their attitudes, understanding and awareness of wireless solutions, as well as on their plans for potential wireless implementation. Other major findings included:

Respondents Perceive that Europe is Not Leading in Wireless

Among those surveyed, 61 percent said they believed Japanese companies are leading Europe in adoption of wireless, and 48 percent said they thought American organizations are more advanced than Europe.

Businesses Need to Be Educated—Not Sold—on Wireless

While respondents pointed to a number of wireless benefits, they stated that they lacked a clear understanding of the technology and how to implement it—demonstrating a need for wireless service providers to increase their educational efforts rather than their sales pitches.

• Respondents saw wireless technology offering a number of business benefits, including enhanced mobility of people and information (cited by 70 percent of respondents), enhanced flexibility (55 percent), more efficient interaction with technology (47 percent), and enhanced productivity of processes (43 percent).
• Around two-thirds (64 percent) of organizations surveyed agreed that wireless technology will be the main driver in information sharing and remote work opportunities, and 61 percent said wireless technology will be a driving force in the e-business economy.
• Approximately 30 percent of those surveyed estimated that by 2003, 11-20 percent of their total workforce will comprise remote workers using a wireless solution.

At the same time, the research highlighted that respondents' familiarity with wireless technology terminology is relatively low—terms like Bluetooth and Smartphone met with surprisingly low recognition.

European Companies are Looking Primarily to IT Vendors and Systems Integrators—Rather than Wireless Vendors—to Help Them Develop and Implement Wireless Solutions

Overall, 37 percent of those surveyed stated that they would work with their incumbent IT provider to develop and implement a wireless solution, while a further 22 percent said they would look to a system integrator. However, when asked to cite whom they perceive as wireless industry leaders, respondents cited four wireless handset manufacturers (Nokia, Ericsson, Motorola and Siemens) ahead of IT companies.

Investment in Wireless is a Boardroom Decision

More than four out of five companies surveyed (81 percent) stated that their board makes the final decision on wireless investments. This is likely because of the substantial investment requirements (mentioned by 45 percent of respondents) anticipated to implement a wireless solution and the significant amount of change this would involve for the organization overall. In addition, 40 percent stated that it is board-level members of their companies who have the greatest need for wireless information (compared to 40 percent for their Lines of Business, and 64 percent for their Information Technology departments).

"The survey findings show that European companies see the benefits that wireless technology can offer their business—benefits like ease-of-management, productivity gains and increased flexibility. And while they are looking to their IT partners and systems integrators to help them through the transition, it is also clear they are looking for guidance and advice—rather than sales hype—from the industry," said Rob Walker, vice president and chief executive officer, Compaq EMEA. "The launch of the Compaq EMEA Wireless Center last November is an important step in this direction," Walker concluded.

About Compaq

Compaq Computer Corporation, a Fortune Global 100 company, is a leading global provider of technology and solutions. Compaq designs, develops, manufactures, and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, and communications products, commercial desktop and portable products, and consumer PCs that are sold in more than 200 countries. Information on Compaq and its products and services is available at http://www.compaq.com.