| Sumario: | The merger of computer firms Hewlett-Packard and Compaq, announced by their chief executives on September 4, 2001, could prove to be a great challenge because of the companies' wildly different cultures and overlapping product portfolios. Neither company had much choice in the matter: Both were struggling with three powerful forces—the slump in information technology (IT); cut-throat competition; and technological shifts that are turning the mainstay of both companies—hardware—into a commodity. Shareholders must be convinced that the merger makes sense before the deal can go through, and even if it does, the new company will face difficult decisions relating to its new operating units, which will consist of access devices, IT infrastructure, IT services, and imaging and printing.
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