An operating system from Japan, a European computer industry larger than that of the US, and the possibility of 64-bit addressing by 1996, forecasts Aled Hughes of Comparex Information Systems Ltd. Hughes also says that Comparex has no regrets that Hitachi Data Systems, formerly National Advanced Systems, is now 80%-owned by Hitachi Ltd, and not controlled by Comparex Informationssysteme GmbH. This sanguine response is not necessarily one that commentators share. Many feel that Hitachi’s two European resellers will eventually be dragged into a price war, and the loser is likely to be Comparex. However, Comparex insists that Hitachi has no incentive to discount to Hitachi Data Systems, since the Japanese benefits regardless of which company sells its computers.
Pride involved
Hughes also draws a distinction between the respective relationships Comparex and Hitachi Data Systems have with Hitachi Ltd. He says that Comparex deals with Hitachi’s manufacturing arm, unlike Hitachi Data Systems, which deals with Hitachi’s sales operations. Hughes categorically discounts suggestions that the two companies have adopted some sort of gentleman’s agreement not to trespass on the other’s accounts. He says that they will continue to compete aggressively, and claims that many of Comparex’ clients have received letters and approaches from Hitachi Data Systems. Hughes acknowledges that there is an element of pride involved, and believes that Hitachi Data salesmen would rather see a contract go to IBM or Amdahl than to Comparex. Despite the obvious advantages that a merger would have brought, he also seems relieved that the two companies don’t have to face the trauma of cultural integration. He feels that the Hitachi Data Systems’ philosophy is closely modelled on that of IBM. Consequently, the two cultures would have made uneasy bedfellows. So how does Comparex differentiate its offerings from that of its rival? Of late, the two companies haven’t seen that much of one another. But when they do, the difference lies in price, service, and support. He believes it was service and support that brought John Laing Construction back to the Comparex fold, after a temporary defection to the IBM camp. However, despite a 13-year relationship with Hitachi, Comparex is not averse to casting a broader net.
By Janice McGinn
A new set of products, not sourced from Hitachi, are to be launched in the next few weeks. Comparex denies this is an indication that it’s actively seeking to reduce dependency on Hitachi, but acknowledges that it will source from any appropriate manufacturer. Would BASF and Siemens contemplate selling Comparex Informationssysteme GmbH? Probably not says Hughes. BASF has over 65%, Siemens owns 33.3%, and Siemens recovered its investment within 18 months. However, he believes that the issue is not just about returns. BASF and Siemens are European companies with strong German allegiances, and he doesn’t believe that they would want a European success story to go Japanese. At least, not yet. That Comparex is a success seems undeniable. Approximately 50% of revenue comes from its rental activities, and the company says that it could survive for 15 months without writing new business. The UK has witnessed 40% growth over three years, and Germany has picked up since October with the settlement of the National Advanced question, and a regional authority order for four mainframes. France is still dominated by Hitachi Data Systems, but both it and the Netherlands are doing well. Spain is experiencing phenomenal growth, and Hughes says that Spanish salesmen just sit and wait for the business to roll in. As regards IBM, Hughes adopts the traditional line of the plug-compatible manufacturer. The corporation is in trouble, and it’s largely of its own making. It didn’t listen to users for far too long and this is reflected in its 40% share of the US market, and failure to achieve targets in the UK. He admits that the UK market is particularly competitive, and high interest rates are forcing users to get more out of existing equipment rather t
han purchase new machinery. Even so, the suggestion that IBM UK has only sold 45 3090s when it was aiming for 90, does imply a lack of loyalty in the user base. If rumours are correct, and IBM intends to migrate existing System 36 users to AIX, then loyalty is going to be very important. Hughes maintains that IBM is not serious about Unix, both technically and economically.
Won’t help IBM
He believes it will merely run as a subset of Systems Application Architecture, and won’t help IBM’s financial ills. So what about the long-awaited Summit? Hughes forecast a J booster in July, with Summit following a year later. Summit will probably offer enhanced functionality, such as 48-bit addressing. But, like Gary Moore, president of Hitachi Data Systems, he sees Summit as a staging box, possibly to 64-bit addressing. So where goes Comparex? Hughes says that it may well pre-empt IBM, and it will be more active in communications and software. Will the Comparex portfolio include a front end communications processor? Amdahl has Fujitsu’s, and Hitachi has a 3745-compatible currently not available in Europe. Hughes doesn’t discount the possi-bility, but says that the cost of investment and staff training on such a major new product makes it an extremely expensive venture.
