Digital Equipment has prized asset: service business

Article Abstract:

DEC's $6 billion computer-services organization is a key reason why Compaq acquired the company for $9.42 billion this week. Services are increasing in importance to customers and vendors in an explosive industry. Companies are turning to outside help to handle shifting technological needs that frequently are crucial to their operations. Digital ranks third in worldwide service, trailing only IBM and Electronic Data Systems. John J. Rando heads the 22,000-employee DEC unit, which already helps Compaq run its technical assistance operations. Its overall annual growth of less than 5% trails the industry growth rate of about 15%, but DEC has been pursuing some potentially lucrative areas. DEC's alliance with Microsoft has given DEC expertise in building and installing Windows NT-compatible computer systems. The DEC service unit derives around $4 billion in annual income from maintaining systems that include old DEC equipment, a segment that is not growing, according to analysts.

Electronic Computer Manufacturing, Computers & Auxiliary Equip, Compaq Computer Corp., CPQ, Company acquisition/merger, Digital Equipment Corp., DEC

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Japanese firm to buy Comdex computer show; Softbank's purchase price of $800 million includes 16 smaller exhibitions

Article Abstract:

Japanese software developer Softbank Corp announced that it will purchase the huge Comdex computer trade show from the Interface Group for $800 million. The purchase marks the biggest Japanese acquisition of an American property in recent years. The Comdex Fall show in Las Vegas is the largest and most influential trade show in the computer industry. Softbank reported that it expects the deal to be completed in Apr 1995. The 1994 Comdex Fall show drew 195,000 attendees and 2,200 exhibitors. Comdex has been criticized recently by industry members for its exorbitant prices, which amounted to $40.95 per sq foot. Industry analysts contend that the Interface Group's overhead for the show was insignificant compared to the prices charged to exhibitors and attendees. The deal also includes the purchase of 16 smaller shows including seven other Comdex shows, Enterprise Computing Solutions and Windows World.

Trade Shows & Conventions, Contracts, Softbank Corp., Trade shows, Comdex, Company Acquisition Merger, Interface Group Inc.

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Two new computer firms plan merger in response to a tough environment

Article Abstract:

Stellar Computer Inc and Ardent Computer Corp announce a merger to help them battle fierce competition in the graphics supercomputer market. The two companies have, until now, split a market that did not grow as quickly as hoped, and industry analysts see the potential merger as an uneasy marriage. Ardent Chmn and CEO Allen H. Michels and Stellar Chmn J. William Poduska initially will share the offices of Chairman and CEO of the new company, Stardent Inc. No plans are yet available outlining which computer design will prevail in the new company, but one insider warned that without a clear statement of direction, customers will not buy Ardent or Stellar machines.

Planning, Business planning, Workstations, Competition, Computer Industry, New Company, Graphics System, Merger, Ardent Computer Corp., Stellar Computer Inc., Stardent Computer Inc.

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