Conference 7.286::digital

[First! for the Web]

HP vs. Digital/ Revenge at 20 paces

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Date: Monday, March 31, 1997
Source: PC Week
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PC Week via Individual Inc. : In August 1995, Bill Gates and Robert Palmer
held a press conference to detail a budding alliance between Microsoft and
Digital Equipment. As part of the deal, Microsoft agreed to pick up the $65
million tab to help train more than 1,500 Digital employees so they would
become expert in installing NT.

The two CEOs decided to stage their press conference in San Francisco, just
a 40-minute drive from the Palo Alto, Calif., headquarters of Digital's
archrival, Hewlett-Packard Co.

But a couple of weeks ago, Microsoft and HP announced a development and
licensing deal. The announcement was good for a headline or two and then
surprisingly fell off the front pages.

On the surface, the March 19 announcement was quite straightforward,
highlighted by an agreement to work toward reducing the total cost of
ownership-- the buzzword du jour--for desktop computer users. The
announcement also included product moves designed to help managers reduce
the amount of time they spend fiddling with corporate networks.

But this was an important deal--important enough for the peripatetic Gates
to leave his Fortress of Solitude and fly down to Palo Alto for the
mandatory grin- and-shake photo op with his opposite number at HP, Lewis
Platt. Although HP and Microsoft have collaborated over the years, the
alliance between two of the computer industry's mega-powers is turning
serious.

HP lined up four-square behind Microsoft's political position in the debate
over network computers, saying plans to ship a Net PC for about $1,000
later in the year.

There's a more important angle. By enlisting HP in its crusade to sell NT,
Exchange and BackOffice applications to corporations, Microsoft gains the
support of a company with stellar credentials in the enterprise computing
market. Microsoft also lines up an ally that provides the kind of deep
support and service so craved by IT managers overseeing mixed computing
environments. In short, Microsoft buys itself extra credibility in the
corporate world where it can disarm the nervous Nellies by pointing to its
new arrangement with HP.

The closer partnership also signals a change in HP's thinking about NT.

Until now, some executives in the company were not fully convinced that
Microsoft's network operating system was suitable for widespread deployment
in the corporate world. It may not be there yet, but there's reason to
believe HP has received a commitment from Microsoft to fix any scalability
problems with NT.

Where does all this leave Microsoft's erstwhile bosom buddy, Digital, you
ask? Scrambling into spin control, that's where.

For the record, Digital executives say this is all just splendid for
everyone concerned. Robert Bismuth, the company's vice president of
corporate alliances, was even quoted saying that Digital will actually
profit because now there's another major computer company backing NT as a
"legitimate" operating system for enterprise computing.

Bismuth, who must be a big fan of George Orwell's novel, "1984," was doing
his job and putting the best face on an embarrassing situation. For the
last year and a half, Digital officials have been talking up their special
relationship with Microsoft every chance they could. Now that honeymoon is
over.

HP aced out Digital because Microsoft believes it can do a better job
helping it sell NT. Microsoft isn't sentimental about these things. It is
in a hurry and Digital wasn't keeping up. So it went looking elsewhere.

On top of all this, there are hints that Digital may be planning to shuffle
the deck again. The rumor mill has Harry Copperman getting moved aside as
the vice president of Digital's system business unit and Bruce Claflin
stepping up to become President or CEO.

Does any of this mean Microsoft is about to toss Digital aside? Hardly. The
more NT allies it has, the better it is for Microsoft. But HP clearly got
more than its foot in the door when it signed on the dotted line--and
thumbed its nose back at Digital.

<<PC Week -- 03-28-97>>
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[Individual, Inc.]

>>HP aced out Digital because Microsoft believes it can do a better job
>>helping it sell NT. Microsoft isn't sentimental about these things. It is
>>in a hurry and Digital wasn't keeping up. So it went looking elsewhere.

This seems to be a major problem with us.  It doesn't surprise me anymore.  We
continue to be "well positioned for the future", but tomorrow never comes.

-John

    
    
    
    Finally a public announcement that politely says what we mean...
    
    JMHO
    
    John W.
    
    
                                        Date:     28-Mar-1997 03:01pm CST
                                        From:     Readers Choice
                                                  CHOICE.READERS@A1@SALES@PKO
                                        Dept:      
                                        Tel No:    

TO: See Below
 
Subject: #29976-Response to HP Announcement                                     

 From: Gerard van de Aast, Vice President Mail & Messaging, DTN 381-1871
 
 On March 19,1997 HP and Microsoft announced a joint strategy which 
 included material regarding OpenMail and Exchange. 
 
 QUOTE FROM HP ANNOUNCEMENT
 HP will "promote Microsoft Exchange as a strategic Windows NT Messaging 
 solution for the Enterprise", and "HP plans to discontinue further 
 marketing and development efforts on OpenMail for Windows NT." 
 
 This announcement promotes a strategy which DIGITAL has endorsed and 
 been aggressively promoting for the past 9 months.  This strategic 
 choice by HP clearly recognizes the highly successful implementation by 
 DIGITAL of this strategy reflected in over 750,000 seats won to date.  
 HP's endorsement of this strategy will further help to develop the 
 market for Enterprise Exchange implementations.  The DIGITAL value 
 proposition is to build around our Alliance with Microsoft, our 
 scaleable Intel and Alpha Systems, our added value software, our 
 industry leading services and our own Exchange implementation inside 
 DIGITAL.  HP cannot match any of the elements of the DIGITAL value 
 proposition at this moment in time.  
 
 ALPHA and INTEL POWER
 DIGITAL has the broadest most cost effective line of Intel and Alpha 
 servers.  Our Alpha server 4100 will accommodate the largest number of 
 Exchange users in the industry. HP has only its Intel line to offer and 
 will rely on the Intel Merced chip to provide a highend system offering 
 which is not expected until 1999.  
 
 DIGITAL SERVICES
 Digital has an important advantage in the marketplace because of the 
 breadth and depth of our Exchange service offerings.  HP has made an 
 announcement that they will develop and offer similar services.  This 
 gives DIGITAL a commanding lead since our services have been
 available and tested in the market for the last 9 months. 
 
 The DIGITAL Exchange IMPLEMENTATION     
 DIGITAL has an internal corporate implementation of 35,000+ seats to    
 date giving DIGITAL a lot of hands-on learning experience captured for 
 the benefit of our customers.
 
 IN SUMMARY
 HP's endorsement of Exchange as the messaging solution for the 
 Enterprise will increase the market opportunities.  DIGITAL has a 
 decisive headstart in this market reflected in over 750,000 seats won 
 to date.  The DIGITAL value proposition and offering is unique in terms 
 of completeness and immediate availability.  This positions 
 DIGITAL as the premier choice for Exchange implementations. 

 Distribution:  You received this message because your Reader's Choice profile 
 indicates you are Sales and Marketing.  To modify or view your Reader's Choice 
 profile in the Web use URL, http://webrc.das.dec.com  or in VTX use keyword 
 PROFILE.  If you have questions, please send mail to SALES::FEEDBACK or 
 feedback@sales.enet.dec.com
 
 
 

I had dinner last night with an Oracle employee who has nothing 
against us. They are being told internally and from outside news 
sources that Microsoft have given Exchange to HP to sort out because 
Digital didn't do a good enough job, and didn't get it to scale 
properly.

I put him straight on these points, but it's worrying if this is the 
way the HP announcment has been seen.

Greg

    Wonderful how rumours get started ..... Digital couldn't get it to scale
    properly.  Like as if we're doing the coding ... yea right.
    

RE: .62

	Someone's taking a long drag on the FUD crack pipe over at HP.

	Digital has NO code in the base Exchange Server product. None.
	Digital has mearly been one of the largest installers/consumers/
	resellers of Exchange.

	The group I work for makes a voicemail add-on to Exchange.
	You may read more about it at http://isg25.zko.dec.com/ctiserver

	I'm sure the Exchange group at MS would love to hear that rumour.

							mike

    Talk about rubbish.  -We- couldn't get -Microsoft's- product
    to scale?  No one with the slightest understanding of software
    will believe that.                                  
    

    Besides, exactly when did Oracle folks get on the Microsoft's guest
    list to get these type of juicy bytes ?
    
    - Vikas