Clash of technologies in merger: Citicorp and Travelers' computers not on speaking terms

Article Abstract:

Travelers Group and Citicorp would need until at least 2008 to fully integrate their computer and database systems, in light of their planned $84 billion merger. The largest hurdle will consist of reconciling Citicorp's preference for advanced technology with Travelers's accent on inexpensive, low-cost systems. Citicorp, meanwhile, has been struggling since 1988 to organize the computers that operate its banks in 100 countries. Travelers can hardly communicate with computers in the insurance company's Salomon Smith Barney brokerage or its Commercial Credit finance company. Citigroup, the proposed name for the companies, would face the additional challenge of merging computer departments that already are working at full strength on other projects. Key current issues include planning all systems for compatibility with a new 1999 European currency, as well as the year 2000 date.

Commercial Banks, Commercial Banking, Insurance, Insurance Carriers and Related Activities, INSURANCE CARRIERS, Mergers, acquisitions and divestments, Company acquisition/merger, Insurance industry, Credit and debit card industry, Credit card industry, Citicorp, CCI, Travelers Inc., TRV

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I.B.M. deal with Dell put at $16 billion; a 7-year plan to buy Big Blue's hardware

Article Abstract:

In an move signalling innovative strategies in the computer industry, IBM and Dell announced an agreement in which IBM will sell $16 billion in parts to the PC maker. IBM has a wealth of patents from its research on developing new equipment which it is now willing to sell to competing computer companies. Dell's strength is in assembling and manufacturing PC, which makes it a good fit for benefiting from IBMs technology. The primary component in the transaction will be IBM disk drives.

United States, Computer industry, International Business Machines Corp., IBM, Contracts, Dell Inc., DELL, Distribution, Company distribution practices

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