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F O R I N T E R N A L U S E O N L Y
COMPETITIVE ACTION - WEEKLY UPDATE
JANUARY 21, 1993
Welcome to the new Competitive Action Weekly.
If you need more information about these articles, please send an HP Desk
message to Competitive HP/6650 Include your name, non-telnet FAX number
and the number that precedes the article you need.
If you would like to be added, deleted or you have changed locations, please
send a message to Competitive HP/6650. Include your HPDesk address.
Competitive Action is posted to HP-UX notes in the group hp.marketing. The
string is entitled "hp.competition for <date>".
BC = Beyond Computing
BW = Business Week
CW = Computer World
DNR = Digital news & review
EN = Electronic News
IW = Information Week
MS = Midrange Systems
OST = Open Systems Today
RSM = RS/Magazine
SO = Sun Observer
SW = Sun World
UGX = Unigram-X
UR = Unix Review
WSJ = Wall Street Journal
Editor,
Nadine Halsted
****************************************************************
DIGITAL ARTICLES
****************************************************************
45.
**DEC'S PATHWORKS PUT ON TRACK
(CW,1/11/93,pg.14)
DEC will showcase beta versions of its Pathworks for Microsoft Corp.
Windows NT and Novell, Inc. Netware products at Networld '93 in an
effort to persuade attendees to make VAX and Alpha systems key
components of their client/server strategies. However, Pathworks for
Netware clients will not be able to use their native IPX protocols to
access DEC host enterprise applications such as E-mail, multi-host SQL
database access and IBM host gateways.
46.
**COMMENTS
(UGX,1/11/93,pg.2)
DEC states that 400 of the 900 software packages announced for Alpha OSF/1,
OpenVMS and NT platforms will be shipping by March. A total of 2,000
programs have been committed to Alpha. [Editors note: Compare this number
to HP's combined portfolio of more than 11,000 software applications.]
47.
**DEC PLANS LOW-COST ALPHA FOR X-TERMINALS
(UGX,1/11/93,pg.3)
There's an Ultra Low Cost Alpha chip in the works at DEC targeted at X
windows terminals, palmtops and embedded applications. It may be a 3 Way
AXP implementation intended to run at 58.8 MHz and produce 40 SpecMarks.
This chip may find a home inside the projected DEC windows terminal III
which could be the first AXP platform under $2,000.
48.
**HOLDS OFF ON MULTI-ARCHITECTURE VMS
(UGX,1/11/93,pg.3)
It is suspected that R&D cutbacks at DEC are threatening its two-year-old
effort to produce an architecture-independent version of OpenVMS. This does
not impact DEC's flagship database Rdb which is reportedly being rewritten in
C for OSF/1 and may also get ported to Windows NT.
49.
**DIGITAL REPORTS LOSS SMALLER THAN EXPECTED
(WSJ,1/15/93,pg.A3)
DEC reported a net loss of $73.9 million for the period. Revenue rose to $3.69
billion from $3.48 billion. Continued growth in services, such as designing
and managing corporate computer networks, offset flat growth in product sales.
Next generation Alphas were off to a good start. But most sales go to software
developers and large customers that are only evaluating the new design.
Midrange and high-end Alpha machines aren't yet selling well because some
key application software packages aren't ready yet.
**********************************************************
HP ARTICLES
**********************************************************
50.
**FEDS OVERHAUL NATIONAL WEATHER SYSTEM
(CW,1/11/93,PG.20)
AWIPS is the nerve center of the forecasting offices and displays data from
other components of the system. Using AWIPS, from two to 10 times as much
data will be integrated automatically for display and analysis on a single,
high-end Hewlett-Packard Co. workstation. Aided by software from Atmospheric
and Environmental Research, a meteorologist will be able to overlay and
animate images and graphics in near-real time.
51.
**WILL PENTIUM HURT THE RISC WORKSTATION MARKET?
(UR,2/93,pg.16)
Intel's new pentium chip is expected in high-end PC's the first half of '93.
The first Pentium-based PC's are expected to run at between 80 and 100
mips, well above Sun's new SPARCclassic at 59 mips and HP's new
715/33 at 33 mips. But will Pentium PC's compete directly against
RISC workstations? Probably not. Analysts say few single-user PCs are
sold for use as UNIX workstations.
52.
**MERCED COUNTY'S MAGIC ACT
(CIO,1/93,pg.104)
A distributed environment and an expert system have helped one human-
services agency create some very special effects. With 70% of the processing
now off-loaded from the Hitachi Model 44 mainframe onto HP workstations,
operating costs have also been reduced. Technologies include an HP 9000
with Ingres and an expert system running on HP workstations. [Editors note:
This is a great write up for a mainframe downsizing prospect.]
****************************************************************
IBM ARTICLES
****************************************************************
53.
**IBM TUESDAY REPORTED PRELIMINARY WORLDWIDE
FINANCIAL RESULTS
(BUSINESS WIRE, 1/19/93)
Worldwide revenue for the year ending December 31, 1992, was $64.52
billion, down .4 percent from the prior year's $64.77 billion. After the
cumulative effects of the adoption of accounting changes, net earnings
in 1992 were negative $4.97 billion. Charges for capacity and work
force reduction actions amounted to $11.6 billion. Mr. Akers
emphasized that the company's strategy is based on: Intensifying the
focus on key growth areas, encouraging the autonomy of individual
business units, further reducing costs.
54.
**IBM FUD
(IW,1/11/93,pg.42)
FUD. It's a sales strategy long used with precision by IBM's sales force back
when it was flush with success and at the top of its game. "Nobody ever got
fired for buying IBM," sales people liked to say. Well, what goes around
comes around. Now, customers and investors say, FUD hangs over IBM and
clouds its future. IBM is evolving along the lines of two business models.
One paints IBM as a flexible, high-volume, low-margin manufacturer. The
other sees the company as a highly skilled professional services organization.
Caught in the middle is a marketing and sales organization experienced in
neither.
55.
**AD/CYCLE - BACHMAN SPURNS IBM
(CW,1/11/93,pg.2)
Bachman Information Systems quit IBM's AD/Cycle alliance last week, citing
pressure from IBM to cater to IBM products. Bachman stated that "we won't
have IBM complaining about our supporting Sybase or other database
vendors". Bachman also withdrew from its partnerships with IBM for
System/View and Information Warehouse. Bachman was the second partner to
exit. Intersolv pulled out five months ago citing the enormous expense of
AD/Cycle, which requires member companies to split profits with IBM on all
products sold under the banner. [Editors note: Use this when recruiting HP
ISV's. When competing with IBM's mainframe products, ask the prospect if he
is planning on doing any software development and how confident he is in the
future support of development tools.]
56.
**ISSC CHANGES SEEN
(CW,1/11/93,pg.2)
IBM is expected to raise the stature of its Integrated Systems Solutions
Corp. by shifting vertical market staff members into the outsourcing
subsidiary and fortifying management. The move is part of an effort to
give ISSC a more prominent role at IBM as Big Blue implements a
services driven strategy. Some industry observers said they believe this
sets the stage for an ISSC public stock offering.
57.
**SERVER ARENA CROWDED - PC'S MINICOMPUTERS TAKE AIM AT
SUPERSERVER MARKET.
(CW,1/11/93,PG.63)
An IBM 4381 has a peak trans./sec rating of 32 and a $/tpsA of $66K. [Editors
note: Compare this to our HP F10 at 30.4 tpsA and $/tpsA of $11K.]
58.
**IBM TO SHIP DCE PRODUCTS THIS MONTH
(UGX,1/11/93,pg.6)
IBM's first DCE - compliant products combined with its partner Transarc
Corp's Encina transaction processing system are due to be shipped by the end
of this month - but without IBM's Distributed File System component. DFS
won't be available until June. The software will initially run on both client
and server RS/6000 platforms with other platforms to follow.
59.
**IBM TO CREATE TWO PARALLEL RS/6000 PRODUCT LINES
(UGX,1/11/93,pg.7)
The designers of the PowerRisc created a chip that was heavily skewed
towards scientific and technical applications - but the RS/6000 is at least as
widely used in commercial applications as in technical. The company is
planning to come out with parallel lines of RS/6000's, with the present models
and their derivatives assuming a T for Technical subscript, while a new line,
based on versions of the PowerPC, will carry a C for Commercial tag. The
lines will be binary compatible so all application will run unchanged on either,
but the PowerPC is optimized for database and transaction applications.
60.
**FOUR FOR MORE - FIRST PARALLEL PROCESSOR RS/6000 MODEL
JOINS PRODUCT LINE
(MS,1/12/93,pg.3)
The new Shared Memory System POWER/4 contains four RS/6000 processor
cards linked into a parallel processing system. The system produces a
theoretical performance peak of 336 millions of floating-point operations per
second. Currently, the system is being marketed on a limited request per
quotation basis, primarily so the installed systems can be monitored closely.
61.
**LOOK MA, NO HANDS,
(RSM,,12/92,pg.10)
New voice-recognition technology set to be available for the RS/6000 in the
next few months. The technology lets users talk to operate the computer and
navigate through applications without requiring a key-board or touch screen.
This system was demonstrated at IBM's booth at UNIX Expo and handles a
200,000-word vocabulary.
62.
**IBM RATINGS ON ITS DEBT SLASHED BY S&P
(WSJ,1/15/93,pg.A3)
Acting more severely than expected, S&P slashed IBM's rating three notches
to A--. The ratings agency cited IBM's significantly lower than anticipated
results, especially in its core mainframe computer business.
****************************************************************
NCR
****************************************************************
63.
** NCR REGROUPS, MAKES PLANS FOR COOPERATION
(CW,1/11/93,pg.47)
With 20/20 hindsight, NCR executives recently admitted that the company
probably would have been better to back Unix rather than OS/2 servers when it
introduced its strategic Cooperation software platform in January 1990. NCR
has stated that all future enhancements to Cooperation would be under the
Unix implementation - dubbed Cooperation 2.1 - due out next month.
64.
**VAR WATCH
(UR,2/93,pg.18)
Hoping for better communications with its resellers, NCR has started its
Personal Touch Telephone Service. Members of NCR's Marketing Planning
and Programs staff will interview both direct and indirect resellers each quar-
ter and seek ideas for improvements in existing reseller programs. This service
will also keep resellers informed of program changes and product
announcements.
****************************************************************
SEQUENT ARTICLES
****************************************************************
65.
**SEQUENT IN NT SUPERSERVER PARTNERSHIP
(UGX,1/11/93,pg.1)
Sequent and a still unidentified partner are developing a five-member Pentium-
based symmetric multiprocessor line that Sequent will reportedly offer as a
software development, application server and database platform for Windows
NT. NT currently supports a maximum of 16 processors, although Sequent has
been working with Microsoft to extend it to 32.
****************************************************************
SUN ARTICLES
****************************************************************
66.
**SUPER TUESDAY REVISITED
(SE,1/93,pg.10)
Shipment dates for the SPARCcenter 2000 include the eight-processor
in June, the 16-processor in 2H93, and the 20-processor 1H94. SMCC is
not positioning the SPARCcenter as a mainframe or mini replacement,
but as a mainframe front end. One clue about the future of SMCC as a
big iron vendor is SMCC's careful and repeated hints about "high-
availability" hardware and software that is on the horizon from Sun.
67.
**NEW SPARCSERVER 600MP UPGRADE PRICES
(SE,1/93,pg.8)
Upgrade prices for the SPARCsystem 330 board upgrade to dual-cpu, 64MB
SPARCsystem 630MP is $20,495. From 330 to 630 with superSPARC and
superCache is $26,495. From SPARCsystem 370 or SPARCserver 390 board
upgrade to dual 64 MB 600MP is $21, 995 with superSPARC and superCache,
$27,995. From 470, 490, 3/470 board upgrade to dual CPU 64MB 600MP, is
$20,495.
68.
**JUST IN
(SE,1/93,pg.14)
SunSoft has ported its ToolTalk application-integration software to platforms
from Cray Research, DEC, HP, IBM, Intergraph and Silicon Graphics. All
ports are available now.