Conference 7.286::digital

    
    hardly

    that's one way to focus on alphas !
    
    
    
    
    
    
    
    steve

    
    what is a pcbu  (sorry..I just work here :-}
    

    > what is a pcbu
    
    Personal Computer Business Unit.
    
    I would not necessarily be shocked if we sold off this unit, BTW.
    
    	Steve

The PCBU makes a good profit, has for the past year or more.  It's probably
our fastest-growing segment.  It would be insane to sell it off.

				Steve

    > It would be insane to sell it off.
    
    Yeah?  What's your point? :-)
    
    				-John
    

Sigh....

	Steve

    Re .5
    
    I heard that the PCBU lost $37M in Q2 alone. This is profitable?
    

    .5  Heard Q1 was some 33m and Q2 around 56m. Q3 results??
    In any case WE need all our BU's on the plus side and contribute
    to the total profitability.

    My understanding is that the PC Direct business was sold off.  We still
    own the PC business, but the 800 # for ordering directly was sold.
    
    In some ways this makes sense.
    

    
    re:-1
    That's exactly the word we just got from some folks in Tele-sales!
    
    
    
    But they also noted that ATT was kind of courting the PCBU ?
    
    Maybe there is some real interest here and it's just speculation that we
    were sold?
    
    
    Bill
    

    We're told the catalog sales portion was sold.  We (Digital) are still 
    making PC's and we're still in the PC business.
    Sue
    

    I work in the Syracuse, NY office and I heard the same thing today at
    lunch, anyone have any more details?
    
    Joanne

>  the 800 # for ordering directly was sold.
    
How jolly! Now my recent order which was verbally confirmed for 10 day
delivery when they took my credit card info, and then later confirmed
in writing for 60 day delivery, will now probably become 120 day delivery
thanks to the changes in management/ownership. Way to go, DIGITAL. Keep
those customers happy . . . . 

Worldwide News                                 LIVE WIRE

Digital moves PC Direct catalog, telesales ...              Date: 07-Apr-1995

Page   1 of 2  
  
 Digital moves PC Direct catalog, telesales operations to PCs Compleat
  
 
         Digital today announced that it will end its PC Direct catalog 
   and direct telephone sales operations and transition those activities 
   to PCs Compleat of Marlboro, Mass.  
         All 59 PC Direct employees will be offered employment by PCs 
   Compleat, which will also open an office in the Merrimack, N.H. area, 
   where PC Direct is presently located.  The transition is expected to be 
   complete in late June.
         As part of the agreement, PCs Compleat will offer a catalog, 
   "Digital PC Catalog by PCs Compleat," and will handle calls to the 
   Digital PC Direct toll-free 800 numbers through at least the end of 
   this calendar year.  
         PCs Compleat also becomes an authorized Digital PC reseller as a 
   result of the agreement.
         "For the past 18 months, Digital PC has been moving from a direct 
   to an indirect sales model," said Michael Pocock, vice president of 
   Americas Sales, Personal Computer Business Unit.  "Two years ago, about 
   80 percent of the business was handled by Digital selling directly to 
   customers.  Today, approximately 65 percent is handled by our partners 
   -- our resellers, distributors and systems integrators.  
         "The arrangement with PCs Compleat sends a strong message to our 
   key partners that we do not want to compete with them," Pocock 
   continued.  "This partners business model is being pursued all across 
   the corporation."
         Pocock noted that PC Direct and DECdirect combined have been 
   ranked in the Top Five worldwide in a survey of consumer and computer 
   catalog operations.  "We feel that our arrangement with PCs Compleat 
   gives us the opportunity to continue to grow market share in the direct 
   response channel to the benefit of the hardworking people of Digital PC 
   Direct."
         PCs Compleat was chosen, Pocock said, for a number of reasons.  
   "We were looking for a partner that is successful with smaller accounts 
   with catalog and telesales; a company that would as seamlessly as 
   possible take over the servicing of thousands of our customers who rely 
   on our direct organization; and a firm that would offer employment to 
   Digital employees in the Merrimack area.  PCs Compleat fit the bill on 
   all three counts."
         Gordon B. Hoffstein, chairman and chief executive officer of PCs 
   Compleat said, "The transition of Digital's PC Direct operation to PCs 
   Compleat represents a tremendous opportunity for all of those involved.  
   We look forward to working with such an experienced and successful 
   sales and marketing organization.  Together we will continue to build 
   Digital's brand recognition in the direct channel."
         Hoffstein added, "Digital products at PCs Compleat are an 
   integral part of our company's strategy to be the premier direct source 
   for personal computer products and services."
         Privately held PCs Compleat was founded in 1991.  It is a 
   telephone and catalog operation serving primarily small and medium-size 
   businesses.  PCs Compleat has won "PC Computing's" Five Star customer 
   service award; "CIO" magazine's Esprit award for information systems, 
   and Merrin Information Services' Channelmarker Lighthouse award for 
   excellence.      
                       FOR DIGITAL INTERNAL USE ONLY

    And PCs Compleat has a pretty slick home page on the web, too:

    	http://www.ocm.com/pcscompleat/

    I view this as a good sign - almost anyone could do a better job than
    "Desktop Direct"....
    
    				Steve

    Not to pick nits, Steve, but if Desktop Direct was doing anything less
    than a splendid job, then isn't the right solution to fix the problem? 
    Our direct sales people are often the ONLY perception that a would-be
    consumer receives of our whole corporation.  Those consumers who know
    Digital only by that telephone number (yes, there probably are more
    than a few) will receive an experience not controlled by us.  That does
    not necessarily give me a good feeling.
    
    How many times have you come across customers who wanted to purchase
    from Digital, but couldn't figure out how?  It happened to me one time,
    while traveling.  I and another DECCIE needed a printer.  We did
    everything humanly possible to acquire a Digital Printer for a PC. 
    Nobody could sell us one.  After two days of frustration (that cost
    somebody in excess of $2,000 - it would have been cheaper to FEDEX an
    LN03), we finally bought a 200 buck Tandy printer from Radio Shack. 
    Had that been my only experience of Digital, then, as a consumer, I'd
    not waste another thought thinking about Digital.  Isn't this the
    experience many consumers will have, if they try and fail at purchasing
    direct from Digital. 
    
    Perhaps I'm wrong, but this move may gain a few distributers, but seems
    destined to lose even more consumers.  Tell me I'm wrong next year if I
    am.
    
    /STeve

    I had a rather miserable experience purchasing from Digital - I tried
    to get someone in management interested in the problems, but it went
    nowhere.  My belief is that a separate company will probably do a 
    better job.
    
    					Steve

    Does the sale of DEC Direct effect the Employee Purchase Plan (EPP)? Is
    it possible that PCs Compleat may actually be able to provide a better
    price than EPP for PC systems?


    							-Paul

    I'm one of the 59 people going to PCs Compleat...
                
    With regard to concerns for the customer, I am absolutely convinced
    that this is the right move.  PCs Compleat offers 24 hour/lifetime 
    service, next day shipping, custom configurations/pre-loaded software
    and a guaranteed lowest price - all things that Digital is not set
    up to do directly for the end user and qualities that are extremely
    important to this small & mid-sized business segment.
    
    I've been at Desktop Direct (PC Direct) since it's founding in 1991.
    We've fought the good fight, attempted to shape ourselves into a
    business that could service major corporations and individuals, but
    the two simply don't mix.
    
    The PCs Compleat founders were here last Friday, speaking to the group
    that's moving.  I cannot adequately express how refreshing it was to
    hear straight forward answers to our questions.  Their organization
    chart consists of the customer in the middle of a circle, marketing/
    finance/operations, etc as spokes of the wheel and the CEO & board on
    the outside of the wheel.
    
    Each of the founders does a weekend shift once a month when they are
    on the phone, taking customer orders.
    
    Give us a chance - I expect the new catalog and teleselling operation
    to be an extraordinary success.
    
    Peggy Stokes

    I bought both my Dec XL pc and a Dec Venturis pc for my mother
    from PCBYDEC, and the two sales reps were great, very helpful.
    

    
    >I bought both my Dec XL pc and a Dec Venturis pc for my mother
    >from PCBYDEC, and the two sales reps were great, very helpful.
    
    	Where'd you get them, Sam's Wholesale Club?
    
    	8^)
    

    Are we to continue to refer customers to 1-800-722-9332 (PCbyDEC)?
    Is there a new 800 #?

    RE: .24
    
    The Livewire announcement indicated a late June transition date. I
    would imagine the existing phone # should work until then.
    
    kjg
    
    

    The existing number will work until then
    AND 
    it will land at our new PCs Compleat office after the transition.
    
    Just don't call it PCBYDEC.  We were supposed to drop that when
    we became DIGITAL last year or so.

    For DEC this sale eliminates a channel conflict and will allow more
    aggressive pricing for direct tele sales.  We'll have a good channel
    providing feedback about how we package PCs to satisfy customers in PCs
    Compleat while at the same time will be able to win support from other
    tele sales companies because we are no longer a competitor.
    
    I really appeciated the support I got from the sales rep I worked with.
    While our conversation lasted only a few minutes, I didn't feel rushed
    or like just another number.  I'm glad that at least one of the people
    being "sold off" views this sale as a win-win,   They played a key role
    in creating our PC business, but their success means that they are too
    valuable to disband, but too good to keep.

re: my .14

In all fairness, I must mention that I was contacted by a concerned
individual from the PC area regarding my problem with the shipment
I'd expected, as a result of my posting. They were good enough to
expedite the matter and informed me today that the item is on its
way to my house.

I certainly appreciate the effort that was put forth to make me a more
satisfied customer.

    I have just been contacted by a Buyer, for one of the main players. He
    is a close friend of mine. He has heard that there are rumours
    circulating around some of our resellers, that the PCBU is being looked
    at by Compaq.
    
    Anyone heard of this stateside?
    
    Steven F
    UK CSC

RE: .29

	Doesn't make much sense to me off the top of my head. Compaq
	has a competitor in just about ever product line that the
	PCBU has, don't they?

	If anything, I'd see Compaq buy Digital and sell the PCBU.

							mike

>	Doesn't make much sense to me off the top of my head. Compaq
>	has a competitor in just about ever product line that the
>	PCBU has, don't they?
    
    Why did Oracle buy RDB?  
    
    -Bruce 

RE: .31

	Because of the customer base. Do we have that healthy a 
	customer base of Intel PC Server systems that Compaq
	would/could be interested in? (I really don't know)

						mike

    In terms of revenue for Q2, the U.S. Post Office was the PCBU's
    largest customer (and for all of DIGITAL as well).
    K

       re: Note 3796.32 by AXEL::FOLEY 

>	Because of the customer base. Do we have that healthy a 
>	customer base of Intel PC Server systems that Compaq
>	would/could be interested in? (I really don't know)


    I have no idea what our Intel server revenue is. We had been one of the
    top five not that long ago.  This weeks PC week says we have slipped to
    number 10.

    I think RDB had around 5% of the market when Oracle bought it from us.

    -Bruce

    eh, if they get it for a good price, it may make sense to them.
    
    Thierry

[First! for the Web]

With $4B in cash, will Compaq go shopping? -- Analysts speculate vendor may
purchase Digital or Unisys

---------------------------------------------------------------------------
Date: Tuesday, January 28, 1997
Source: Computer Reseller News
---------------------------------------------------------------------------

Computer Reseller News via Individual Inc. : Boston -- With Compaq Computer
Corp. sitting on $4 billion in cash, the guessing game is heating up as to
who the company is likely to buy.

High on the list is Digital Equipment Corp. and Unisys Corp., acquisitions
that would instantly propel the No. 1 PC maker into an enterprise company
with additional global service and support capabilities for its channel.

"There is no doubt Digital and Compaq [in the past] have had acquisition
talks [regarding the licensing of Alpha architecture]," said Terry Shannon,
editor and publisher of Shannon Knows DEC, an Ashland, Mass.-based industry
newsletter.

But Compaq was seriously looking at Digital as recently as this fall, said
one Compaq insider.

A combined Compaq/Digital company would make Compaq a $30 billion dollar
hardware company and give it technology such as midrange servers,
workstations and 64-bit technology.

Compaq and Digital, Maynard, Mass., declined to comment.

Compaq's market capitalization is about $23 billion with Digital's worth
estimated at $5.5-billion, according to Dataquest Inc., San Jose, Calif.

"They have generated a substantial amount of cash," said Kimball Brown, an
analyst with Dataquest. "They are trying to grow their distribution
channels globally and buying Digital would help."

In fact, in late 1995, Compaq inked a deal with Digital's Multivendor
Customer Services to provide global service and support.

"The real strategy is to get further in the enterprise. Portions of
Digital, its networking business and its customer base, are strong," said
Vadim Zlotnikov, technology analyst for Sanford C. Bernstein & Co., New
York.

"It's intriguing. You've got the No. 1 Intel desktop manufacturer and a
company with great technology and an understanding of the high end," said
Rick Hamada, senior vice president of worldwide marketing at Hall-Mark
Computer Products Inc., Tempe, Ariz.

Many analysts said the company may buy portions of Digital or spin off some
assets, such as Digital's semiconductor division.

"Compaq aspires to the enterprise but they can't get there alone. [But
they] could get what [they want] without taking the company lock, stock and
barrel," said Shannon.

However, Shannon said Compaq would not be interested in Digital's OpenVMS,
Unix and StorageWorks units. Other financial analysts speculate Unisys
Corp., Blue Bell, Pa., or NCR Corp. may be other choices that could help
Compaq expand into the enterprise service arena.

"Unisys is probably something interesting. They have a strong service and
support offering," said Zlotnikov. Last year, Compaq signed a regional
service deal with Unisys for Japan and Latin America when Digital could not
deliver adequate service.

"They would be a lot better off buying Unisys, which has a market cap of
$1.4 billion," said a Wall Street analyst who did not want to be named.

"Digital would be a bad business move. There is not enough value to justify
the price that they would have to pay. For

$4 billion, you could get a decent services company without all the
baggage," the analyst said.

"Compaq needs to move into enterprise-related markets like high-end
application servers. If you could get there while you are not paying too
much and continue an ongoing earning stream, they should be alright. But
those are two big ifs," Zlotnikov said.

Compaq could be a little gun shy of making a major acquisition. The company
acquired two small internetworking firms, Thomas-Conrad and NetWorth, at
the end of 1995. But since that time, it has not really made any headway
into the internetworking market, industry sources said.

Last week, Houston-based Compaq reported fourth-quarter earnings increased
43 percent, with sales at $5.4 billion. In 1996, Compaq's worldwide sales
grew 23 percent to $18 billion, compared with $14.8 billion in 1995. Compaq
reduced inventory by $1 billion and increased inventory turns from 6.5 to
12.4.

But the computer manufacturer still needs to prove it can successfully
migrate from being a PC maker to become a viable player in the enterprise
systems market.

Copyright 1997 CMP Media Inc.

<<Computer Reseller News -- 01-27-97, p. 07>>
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[Individual, Inc.]

	While the date on this article is Yesterday (or the day before
	yesterday depending which one you pick), the content of the
	article appears to be one that was actually posted last week
	or the week before in the Digital Investing notesfile.

> Date: Tuesday, January 28, 1997
> Source: Computer Reseller News
> .....
> <<Computer Reseller News -- 01-27-97, p. 07>>

Re: 3796.36

I have to admit that the following struck me pretty funny (I guess if I
couldn't laugh about it, I'd have to cry!):

"They would be a lot better off buying Unisys, which has a market cap of
$1.4 billion," said a Wall Street analyst who did not want to be named.

"Digital would be a bad business move. There is not enough value to justify
the price that they would have to pay. For $4 billion, you could get a decent
services company without all the baggage," the analyst said.

> "...For $4 billion, you could get a decent
> services company without all the baggage," the analyst said.

But remember -- you get the monkeys, too.  :-)

-Mark

    
    RE: .39
    
    	The apes ain't worth chump change  8^)
    
    
    	

>        The apes ain't worth chump change  8^)

Don't you mean "....chimp change" ?  :-)

- Nina

    re: .33 by KRATZ
    
    It now appears the PCBU has also won the VA's PCHS contract,
    potentially larger than the USPS' ADEPT contract.