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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Joanna Tsang who wrote (3737)	12/12/1998 3:48:00 PM
From: AlienTech	Read Replies (3) \| Respond to of 6021

Joanna any idea who this one is? high low med? I thought most of the old mcaf guard had already left. I havent even heard of most of these names. >>>> NETA Professional Services, and the road ahead by: nai_insider 2606 of 2608 1) Personal attacks on me for posting truthful content, leads me to think that those attacks are emotionally based. Rather than based on the facts presented. I haven't heard anyone question the accuracy of the information presented. Back in during the first of the year, after the takeover of Network General by McAfee. The NETA management team decided that the services side of the equation was sadly lacking. Network General via their LAN Guru consulting practice, had put together team of the top 5% of networking professionals in the world. Managed then by Terry Printy. These were the consultants that were called in by fortune 100 companies to resolve network issues between vendors or internal departments. Since I came from the McAfee side of the house, I was very impressed with their attention to detail, and the quality of their work. I also knew that their utilization rate of billable hours was just under 60%. Based on my experience of the McAfee model, this would change to 85%. Network General Management took over professional services the first part of 98. They were lead by EVP John Stringer (NGC), VP Terry Printy, and Kevin Corwin (Senior Consultant). At this time, they had a strong sense of unity and of trying to run consulting as a business unit, with the goal of 35% of gross rev. by 2000. NAI services as a whole, not including the channel did about $35million last year between the two companies. In other words management's goal was $350million in services before the end of 2000. This goal was based on input from then VP of the central region sales for McAfee Ken Powell. Ken used to work for Oracle in a minor role. Ken thought that by using the Oracle model. (Over 50% of gross rev in services), that NAI could dramatically effect the bottom line and raise our margins. Great idea, problem was that Mr. Powell had never ran or managed a service organization before. Needless to say when the end of Q298 came. Bill Larson fired the entire management staff of NAI services. It's then that Ken Powell was announced head of the now called Global Professional Services (GPS). Ken had six months to meet his revenue expectations, and created a patented disaster. At the end of Q398. Ken was reassigned back to sales, and Robert Flatly took over both as head of sales, and professional services. Then the exodus starts. Currently their are 4 LAN Guru's left out of a staff at the first of the year of 25. McAfee professional services didn't fair much better. McAfee had always been a big believer in contractors. They released all contractors in July of 98. Then the new management staff started to leave. Stephen Morgan VP of Eastern Services, went to go work for Dennis Klien (Old head of Worldwide Sales) They founded a startup software business. Go to Yahoo's insider trades section and look at Bill Larson's activities. Bill is from what I have been told, heavily invested in this new startup. Also of note is Dale Klien, Dennis's brother. Dale is the VP in charge of Channel services. This is the area that is replacing NAI's professional services. I.e. the announcement on AP news wire of their 350 plus channel partners that are certified. This is a very attractive way to deal with the need for services from NAI's clients. VAR's pay NAI up to 20% of their take, for doing the work. NAI does not have to expend the money or time to create an internal brain trust of talent. After Mr. Powell was demoted back to sales. Robert Yusin, a new comer to NAI was placed in charge. Robert came from the channel partner INTEX. Robert has become the last manager over the NAI internal services department. At the end of this month he will dismantle the New Jersey Scheduling office, and will fire about 75 people with a 1 month severance package. Also the remainder of professional services will also be fired with a one-month package. NAI will lose about 150 people in Dallas and NJ, and most of their ability to support the channel.