Having already ditched its trademark cow logo, Gateway Inc. might want to consider the octopus for its next marketing campaign.

The company is embarking on a multipronged strategy to transform itself into both a consumer-oriented electronics vendor and a business-oriented server and storage vendor, while still maintaining its core PC business that has been battered by competition and a slumping economy. As part of that strategy, the Poway, California, company will introduce 50 new products this year, from handhelds to four-way servers, while it cuts costs in hopes of returning to profitability.

The company discussed its upcoming products and strategies with IDG News Service while Mike Stinson and Scott Weinbrandt visited New York this week for the inaugural CeBIT America conference. Stinson, vice president and general manager for mobile products, and Weinbrandt, general manager for the systems and networking group, along with Gateway spokesman Ted Ladd, talked about the challenges and opportunities that lie ahead for the company.

IDGNS: Why did Gateway wait so long to come out with a PDA?

Stinson: I think it's a combination of things. Really, we were waiting for the right combination of being able to see what customers were looking for. We're very interested in how these products evolve into more connected devices, how they start to incorporate 802.11 or cellular technologies, and just seeing the component costs come down to a point where we thought it made sense for a broader market. If you go back two years, these features are going to cost US$600-$700.

IDGNS: Is there just one model you're going with at launch?

Stinson: On this product, there's just one version of it. You will see some products in the future from us, later this year.

IDGNS: Some analysts think that the recent decline in PDA sales is indicative of a trend where people are more interested in devices like smartphones, devices with voice capability. Is Gateway looking at these types of products?

Stinson: We're definitely looking at those devices, but we don't have one that we're ready to talk about. It's all part of being able to offer a more complete suite of products, both to consumers and to business. This is just one piece of that.

IDGNS: Will you market this PDA to consumers as well?

Stinson: Sure. Particularly in PDAs, you see a lot of individuals buying them and using them for business purposes. They'll be available in all channels.

IDGNS: What is Gateway's strategy for winning over business customers?

Weinbrandt: We relaunched our systems organization in February. Business customers are asking to have to the opportunity to buy their products and services from one vendor.

Gateway has been in the server business and the storage business for many years, but not to the point that we are today. We're making significant investments in our sales organization and our product portfolio. We're offering dedicated services around the systems arena, and managing a supply chain and a factory that is built around complex products.

There are many areas of the company that we are making significant investments in that we haven't done

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