IBM Bullish On Network Computers for 1998; Customers Cite Fast Performance, Easy Administration, Low Costs

Business Wire, Dec 28, 1997

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