Unix will perish by a thousand small cuts, and ICL Plc, the UK-based systems integrator, administered the latest laceration yesterday when it gave details of an alliance with Microsoft Corp that will see the two work together to grab Windows NT related business in four rapidly-growing sectors. And the message for ICL’s customers is that while they are perfectly free to specify Unix, NT will be the company’s preferred platform for the future. For ICL, which made a meager 30m pounds pre-tax income on revenues of 2.4bn pounds last year, the decision to link-up with Microsoft may be lacking in originality but promises immediate financial benefits. No-one is saying how much money is changing hands. But ICL, which has had a close relationship with Microsoft for many years, is promising to train 4,000 staff in Microsoft software at seven worldwide centers. In return, Microsoft will lob an unspecified amount of cash in ICL’s direction as a reward for providing skills that will vastly increase its license revenue. With an eye on the politicians, ICL says it expects to create 1,000 more jobs in Europe over the next three years. As Cap Gemini Sogeti SA, an ICL rival, announced it will recruit 2,500 people over the next year in the UK alone (CI No 3,416) this figure is less than impressive. Indeed, to look at the areas that the alliance is pitching it, you’d have expected a great deal more optimism on the jobs front. With a great deal of hype about ‘customer focused systems’ which will change the way people will live, work, learn and shop, the alliance is aiming at retail, government, education and the enterprise infrastructure market. ICL have already built a strong base in retailing but it is their foothold in the government and education markets that will have Microsoft excited over future revenues. With the UK government aiming to deliver 25% its systems electronically by 2002, there are huge prizes at stake. The big attraction is a multi-billion dollar systems for the Department of Health and Social Security, funded by private finance, and split into several juicy portions. (Since Microsoft already has an alliance with EDS, pitching for the same business, this is a area of business it will find it difficult to lose), And the two companies have high hopes for wiring up schools with national grids for learning spring up in the UK and other European countries. The more mature enterprise infrastructure market is less thrilling in terms of growth but ICL expects to gain from the magic of Microsoft. In the context of the Department of Justice case against Microsoft, both companies twitched nervously at any suggestion that the alliance could possibly mean less choice for customers in a highly competitive market. If nothing else, the alliance shows considerable faith on the part of ICL as to the enterprise readiness of NT 5. Steve Ballmer, Microsoft’s executive vice president for sales and support, was up at 5.30am Seattle time to tell the London conference of his enthusiasm for the ICL deal. It is clearly worth missing a lot of sleep for partners as big and trusting as ICL Plc.
