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TECHNOLOGY : MORE ON TECH : Compaq to Focus on Unix Software

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Bloomberg News

Compaq Computer Corp. said its computers running high-powered Alpha processors won’t be compatible with future versions of Microsoft Corp.’s Windows NT software. Compaq said it will focus instead on the Unix operating system software for high-end machines that use Alpha chips. Compaq said all NT development efforts will be put behind the Proliant line of computers, which use Intel Corp. chips. The decision casts some doubt on the future of Alpha because growth in Unix-based computers has been outpaced by cheaper systems using Intel chips and Windows NT software. Alpha, considered one of the crown jewels in Compaq’s $9-billion acquisition of Digital Equipment Corp. last year, is used in powerful servers and workstations and not in personal computers. Sales of the products have been declining since the purchase. Compaq said it will continue to help Microsoft work to develop the new Windows 2000 software on Alpha machines, but won’t sell Alpha-based computers with it. Compaq shares fell 69 cents to close at $22.94 on the NYSE.

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