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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-18.8%Nov 7 11:47 AM EST

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To: David Lawrence who wrote (20636)8/15/1998 7:30:00 PM
From: Mang Cheng  Read Replies (2) of 45548
 
"3COM Merging With Success"

August 17, 1998, Issue: 1417

Julie Bort

The 3Com/U.S. Robotics merger has been the model takeover. Normally,
when a channel is inherited by a new owner, agony is the norm. Vendors take
a beating in studies such as the APEX poll. But 3Com has inherited not just
one, but two modem channels-U.S. Robotics and Megahertz-and their VARs
still gave incredibly high scores to the networking giant. 3Com came in first
overall and in every criterion save two, in which it earned a close second.

Most telling of all, VARs gave 3Com 81 points for "communication,"
trouncing the two other modem vendors in this area.

When asked, "What about this program has declined the most in the past
year?"

"Nothing" reported VAR after VAR.

When asked, "What has improved about the program in the past year?"

"Communications" replied VAR after VAR. One VAR summed up the
channel's attitude: "3Com has gotten better in communication and products.
We have more products, and it is getting orders to us faster. Communication
is better because now it is easier to get them on the phone and they call us."

For 3Com executives, speed and continuity are top priorities.

"Both companies were so passionate about the strength of channel
relationships, we made sure we didn't disrupt it," says Neil Clemmons, vice
president of marketing for 3Com. "We've been very careful to maintain the
best of both companies [U.S. Robotics and Megahertz], in technical support
and brands, and we merged our sales organization in 45 days."

So for those who say a merger and a happy channel can't be done, 3Com has
either changed the expectation, or is the exception that proves the rule.

techweb.com

Mang
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