In downsizing from mainframes to PCs, unexpected glitches often defer gains

Article Abstract:

Companies that are downsizing mainframe-based environments to interconnected networks of microcomputers sometimes encounter unexpected problems. KPMG Peat Marwick, the accounting company, estimates that 70 percent of its downsizing clients have encountered problems. Costs sometimes are twice what is forecasted. Sara Lee Corp says almost two-thirds of companies that have begun downsizing programs will have to give them up. In the short term, this is good news for mainframe companies because there could be a resurgence of demand for mainframes. Problems with downsizing are usually either technical or political. Technical problems often involve software, which is either unavailable or includes bugs. There are also troubles involving security and backup arrangements. Political problems involve turf wars because information managers often perceive downsizing as a threat. Analysts advise companies planning to downsize to proceed slowly.

Analysis, Management, Usage, MIS, Management information systems, Information systems, Distributed processing (Computers), Distributed computing, Computer system conversion, Trends, System Conversion, Distributed Processing

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Intergraph pays high price to diversify, update image

Article Abstract:

Intergraph Corp is abandoning its long-time reliance on proprietary systems and adopting open, industry-standard systems. The company is the nation's biggest maker of computer-aided design software; it also makes advanced workstations. The 25-year-old company is making its first forays into trade shows. Founder and Chmn James W. Meadlock is giving interviews to the trade press. The about-face comes as the company expects a loss of 38 to 43 cents per share for 2nd qtr FY 1993, ending Jun 30, compared to a profit of 6 cents per share, or $2.9 million, in 2nd qtr FY 1992. Intergraph also anticipates a 14 percent drop in revenue, from $289 million in 2nd qtr 1992. The company's stock has lost more than one-quarter of its value since New Year's Day, closing at $9.75 in national over-the-counter trading on Jul 7, 1993. Intergraph is developing workstations based on Sun Microsystems Inc's forthcoming 64-bit Sparc microprocessor.

Prepackaged software, Finance, Company Profile, Intergraph Corp., INGR, Financial Analysis Software, Strategic Planning, Open Systems

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PC marketers punch up combative ads

Article Abstract:

Microcomputer makers such as IBM and Compaq adopt aggressive advertising campaigns that criticize their competitors and question their ability to weather the ongoing price war. Increased competition and slashed price margins have changed advertising tactics from a focus on differences in price and features to a more personal attack. Most microcomputer makers have increased their advertising budgets considerably, despite a general reduction in other spending and an increase in layoffs. Compaq's advertising expenditures for the first eight months of 1992 of $27.7 million were 76 percent higher than in 1991, and the company announced a 1,000-person layoff in Oct 1992. DEC's 1992 advertising spending was up 50 percent over 1991, and IBM's up 39 percent. The top 10 computer makers spent $194.7 million on advertising in the first eight months of 1992, up 43 percent from 1991.

Advertising, Competition, Marketing Strategy, Advertising (Industry)

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