MicroAge Infosystems Services chosen for major Kodak desktop services agreement; agreement for PC systems, configuration and purchasing may exceed $100 million in value

Business Wire, Oct 11, 1995

TEMPE, Ariz.--(BUSINESS WIRE)--Oct. 11, 1995--MicroAge Infosystems Services, a $1 billion division of MicroAge Inc. (NASDAQ:MICA), a leading information technology master reseller, Wednesday announced that it has been chosen by Eastman Kodak Co. as a supplier for a wide range of desktop products and services.

The total value of the contract, which has a three-year life, could exceed $100 million to MicroAge alone.

MicroAge Infosystems Services (MIS) will provide hardware, software and custom systems configuration to Kodak. MIS will work closely together with three other suppliers, chosen by Kodak, who will provide software, installation and maintenance, help desk and logical LAN services.

MIS, a nationwide network of owner-managed IT branches focused on the needs of large corporations, believes that its flexible approach was a key factor in winning the Kodak business.

"MicroAge Infosystems Services' model offers customers a choice: they can get a complete, integrated capability, including everything from network planning and integration to custom configuration, delivery and technical support; or, individual components, such as distribution and configuration in a best-of-breed fashion," said MIS President Chris Koziol, adding that MIS's branch network has the capabilities and resources to service large corporations on a regional, national or international basis.

The new deal is structured in a way to take advantage of a concept Koziol calls "selective outsourcing services." Kodak contracted with MIS for select portions of the total project, and MIS will take the lead role in managing procurement, configuration and delivery.

"Our strategy is to increase the efficiency, reliability and adaptability of the desktop computing environment, to further increase its business value," said Kodak Director of Information Systems John Chiazza. "We believe that Microage Infosystems Services, in combination with our other suppliers, will be a key component in allowing us to accomplish these goals."

One significant service that MicroAge was selected to provide is system configuration. MicroAge was the first master reseller to develop a configuration capability, and today configures more than 15,000 total systems per month through its ISO-9002-certified Quality Configuration Center (QCC) in Tempe.

As part of the Kodak agreement, MicroAge Infosystems Services has set up network servers in its QCC with complete system "images," including operating system, application and networking software.

When an order is placed, the QCC can put together a system, with the right amount of memory, a specific size hard-drive, and even appropriate data communications or networking cards, and then load the right software for that particular order.

Orders placed in this fashion can usually be delivered within a week after order approval.

To make the process of ordering IT products and services as simple and cost-effective as possible for Kodak, MicroAge has developed links between its own distribution management systems and Kodak's internal IT ordering system.

The links utilize electronic data interchange (EDI) technology, allowing Kodak end users to order products electronically and then be invoiced electronically upon receipt. No paper ever passes between Kodak and MicroAge. Such EDI technology not only shortens the time from order to delivery, but dramatically reduces the costs involved.

The links were developed by MicroAge's newest customer-focused business unit, MicroAge Data Services, headed up by Bob O'Malley. O'Malley's group has been instrumental in a number of new MicroAge initiatives, including the distribution of all MicroAge product and pricing information on CD-ROM -- a move that may save the company millions of dollars a year in printing and shipping costs.

MicroAge is a Fortune 500 company that markets, distributes and integrates information-technology products and services to businesses, institutions and government through and in partnership with its network of resellers and affiliates. MicroAge also provides high-end systems configuration and testing from its ISO 9002-certified Quality Configuration Center.

MicroAge's annual revenues exceeded $2.2 billion in 1994. The firm has headquarters in Tempe.

CONTACT: MicroAge Inc., Tempe

Jay O'Callaghan, 602/804-7987

or

Miller/Shandwick Technologies, Marina del Rey, Calif.

Eric Warren/Tim Westermeyer, 310/822-4669