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IBM Bullish On Network Computers for 1998; Customers Cite Fast Performance, Easy Administration, Low Costs
Business Wire - December 28, 1997 12:29
%IBM %NETWORK-COMPUTERS IBM %NEW-YORK %COMPUTERS %ELECTRONICS %COMED %TELECOMMUNICATIONS %INTERACTIVE %MULTIMEDIA %INTERNET %PRODUCT V%BW P%BW
SOMERS, N.Y.--(BUSINESS WIRE)--Dec. 28, 1997--As the network computer movement enters its second year, consultants and customers are reporting that network computers (NCs) -- the IBM Network Station, in particular -- are catching on fast. Major regional and national chains in the U.S., such as Champion Auto, Walco, Rainbow Apparel and Wolf Camera & Video, in addition to organizations like the U.S. Navy, agree that network computers offer many of the advantages of a PC without the cost and complexity. In Europe, businesses like Best Western hotels are using IBM's network computers to offer travelers convenient access to the Internet and personal productivity applications. Respected analysts from Gartner Group, IDC and Jupiter Communications, among others, now agree that the NC movement is gathering momentum, and that IBM's leadership and success is driving the marketplace. For instance, Gartner Group predicts that 40% of all enterprises will deploy network computers by 1999, and 60% will deploy them by 2001. Moreover, Jupiter Communications recently predicted that 36 million NCs will be in use by the Year 2000. "Our customers have discovered this year that network computers are a cost effective choice for a surprising range of everyday and sophisticated business functions," said Bob Dies, general manager, IBM Network Computer Division. "Their enthusiastic adoption of this technology has put IBM squarely in the market's leadership position, and confirmed that network computers are here to stay. Our Java(Note A) offerings will expand the marketplace even more in 1998." Customers in a variety of industries have quickly recognized the versatility and cost effectiveness of the IBM Network Station, reporting that the devices are easy to operate, offer fast performance and enable access to every conceivable computing environment. Here's a sampling of how customers are using Network Stations and what impresses them most:
-- Houston-based Prime Equipment, which has 160 offices nationwide
that rent industrial equipment, recently installed 600 Network
Stations. Prime estimates that it will save at least $765,000 just
on initial hardware costs (compared to buying PCs), and save as
much as $5 million in maintenance expenses over five years. The
Network Stations will allow authorized employees to access the
Web, as well as point-of-sale, personal productivity and Lotus
Notes(Note A) programs from IBM AS/400(Note A) business computers
and NT(Note A) servers. Travis Singleton, manager of technology
development, said that the "employees love the Network Stations,
and won't give them up. People familiar with PCs didn't want to go
back to their Pentiums. And managers love it because their staff
is much more productive." -- Jacksonville, Fla.-based Bombardier Capital Mortgage is delighted with the 150 Network Stations its employees are using to access ALE loan software running on a local IBM AS/400 server, and financial applications running off a remote IBM ES/9000(Note A) enterprise server. Al Sorheim, director of planing and support services said that "since installation of the new systems, there has been nearly a 400 percent increase in productivity."
-- Walco International, a veterinary supply chain, is installing 350
IBM Network Stations at its 70 distribution centers and
headquarters, replacing PCs and terminals. Users will access JD
Edwards and personal productivity applications running off AS/400
and NT servers. -- Champion Auto Stores, an automotive parts retailer with 180 franchised outlets, is using Network Stations in its customer service department. With the Network Stations, users record orders with programs running on Data General systems, as well as tap into IBM AS/400 business computers. "The Network Stations provide access to more applications than terminals, plus a lower cost of ownership and better manageability than PCs," said Ed Moyer, IS manager for Champion. "There's almost no configuration; you just plug it in and it works."
-- For Atlanta-based Wolf Camera & Video, one of the nation's largest
and fastest-growing businesses of its kind, the key issue is
speedy access to inventory data. "We're trying to move merchandise
to 300 stores," said Stan Simpson, Wolf Camera's systems
administrator. "With the Network Station, we're seeing less than
half-second response times on average, which is the best response
of all our systems." -- NY-based Rainbow Apparel, whose outlets sell women and children's clothes in 42 states, is using Network Stations to access inventory control and other "back-office" applications. The key factor that sold Sam Metwaly, MIS Director for Rainbow, on the Network Stations was the easy administration and protection of data. "Now, we have centralized management; less can go wrong," said Metwaly. "Everything can be loaded from one place, and we don't have to be worried about viruses."
-- The U.S. Navy's new OB/GYN clinic, near the Naval Medical Center
in San Diego, chose IBM's network computers because of their
versatility, integration into a heterogeneous computing
environment, and low management costs -- saving about $1,200 per
year, per machine. The Network Stations communicate wirelessly
with IBM PC servers, one of which runs the Microsoft Office(Note
A) software suite, so users can access word processing files,
conduct research on the Internet or communicate via e-mail.
Doctors and administrative personnel can also access patient
records running on a Digital Equipment Corp. VAX(Note A)
minicomputer, and check labs and order prescriptions with
applications housed on UNIX(Note A) servers. EUROPEAN CUSTOMERS
-- The Best Western Taby Park Hotel outside of Stockholm, Sweden,
last month began offering their hotel guests easy access to the
Internet using IBM Network Stations. IBM NCs in guest rooms, the
foyer and conference centers also give travelers access to Lotus'
SmartSuite(Note A), Microsoft Office(Note A), e-mail and fax
capabilities. -- UK-based Steelcase Strafor, the world's largest manufacturer of office furniture, is replacing both PCs and terminals with Network Stations in three manufacturing plants to access multi-user NT, IBM RS/6000(Note A), AS/400 and IBM enterprise servers. Steelcase predicts that the move will cut the annual maintenance bill by 40,000 pounds, and reduce hardware expenses by 200 pounds per user. "Our IT staff can set up an NC user in half an hour rather than half a day for a PC user," said IT manager John Sanford.
-- Citimap, a London-based publishing company that provides free
tourist guides, says it chose IBM's NCs because of their lower
total cost of ownership and ease of use. Citimap uses them to
access databases, spreadsheets and word processing files. Citimap
said it chose IBM because it was the only NC vendor that could
combine the new Network Station Series 300s as part of its
existing networks of PCs and Apple Macintoshes(Note A). "NCs
offered us a chance to move to a network-centric environment at
relatively low cost," said Matthew Atkinson, Citimap's managing
director.
(Note A) Trademark or registered trademark of their respective companies.
EDITORS' NOTES: IBM news releases are available on the Internet,
via the IBM Home Page at ibm.com. Information on the IBM
Network Station can be accessed at ibm.com
Photos of the IBM Network Station are available by contacting Dean
Nazario or Ari Fishkind at TSI, 212/696-2000 or at dnazario@tsipr.com
and afish@tsipr.com
CONTACTS: IBM, Somers
Edward Barbini, 914/766-3537
E-mail: barbini@us.ibm.com
or
Kathleen Ryan, 914/766-3496
E-mail: karyan@us.ibm.com
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