Last year, Compaq created the enterprise systems and services group (ESSG) as part of a wider revamp (see MicroScope, 22 June 1999), but the company has now decided the group has become too large and split it back into enterprise systems and services. The development follows the resignation of UK director of ESSG Gareth Cadwallader two weeks ago. Rob Watt is caretaker of the enterprise business and Ian Hodgeson now heads up the professional services. One channel source suggested Cadwallader’s resignation came as Compaq tried to bring its structure in line with the US. “The ESSG director job no longer exists in the US [following the departure of Enrico Pesatori last month] and the UK is trying to mirror that structure.” But other channel players appeared not to have been informed either of the revamp or Cadwallader’s departure. Marketing director at Bytes Technology Group Tim Hall and Graeme Watt, regional director at Computer 2000, both insisted they had heard nothing from Compaq about ESSG. A spokeswoman for Compaq claimed that ESSG accounted for 80 per cent of its business and that it was too large to be treated as a single business unit. “We decided we wanted to put a bigger focus on enterprise and storage, which is a huge growth area, so we made the decision to split the division and go back to enterprise and services.” The spokeswoman added it would take time to find the right person to run the enterprise group following Cadwallader’s departure, but his team is still in place. “We’re sorry to lose Gareth after five or six years. As far as I know he does not have another job to go to, but is looking at other opportunities.” Cadwallader was not available to comment.