Abstract (Summary)
Several of the computer industrys largest hardware vendors are repositioning themselves as service outsourcers. That move leaves them vying with more traditional support providers for a larger share of the booming desktop services market. Digital Equipment Corp. has become the latest entrant in the $6-billion desktop services market, announcing PC Utility and Software Utility, an array of products and services covering the purchase, management, and ongoing maintenance of desktop hardware and software. Other big-name players include IBM, which launched NetworkStation Management Services in March 1995, and Unisys Corp., which introduced its multivendor desktop offering 2 weeks ago.
Copyright CW Communications/Inc. May 22, 1995

Responding to fast-growing user demand for one-stop PC and network support, several of the industrys largest hardware vendors are repositioning themselves as service outsourcers. That move leaves them vying with more traditional support providers for a larger share of the booming desktop services market.

Last week, Digital Equipment Corp. became the latest entrant in the $g billion desktop services market, announcing PC Utility and Software Utility, an array of products and services covering the purchase, management and ongoing maintenance of desktop hardware and software [CW, May 15]. Users pay a monthly fee for services they choose to buy. Fees range between $100 and $400, according to a Digital spokesman.

Other big-name players include IBM, which in March launched a similar offering known as NetworkStation Management Services, and Unisys Corp., which took the wraps off its multivendor desktop services offering two weeks ago.

All-around coverage

The feature that distinguishes all three vendors offerings from more traditional PC maintenance contracts is the scope of their coverage, which can include the following:

* Hardware and software procurement.

* Ongoing support and maintenance.

* Help desk services.

* Hardware disposal.

* Desktop and network technology upgrades.

* Strategic consulting.

Historically, users have hired as many as a dozen different service contractors to perform such an array of services, often paying them on a time and materials basis.

"Now, the issue is much bigger than fixing a PC when it breaks. Its more like knowing how many PCs you have, knowing which PCs have which versions of software and who has access to what," said Allie Young, a senior analyst at Dataquest Worldwide Services Group in Westboro, Mass.

"The trend is not just managing PCs but managing distributed systems," she said.

In many cases, the growth of client/server systems and the rapid deployment of distributed desktop devices have made computing environments too complex and too fast for users to maintain on their own, according to users and analysts. In turn, increasing complexity has meant increased PC life cycle costs, which Gartner Group, Inc., a consultancy in Stamford, Conn., pegs at around $40,000 over a five-year period.#p#分頁標題#e#

"As a result, outsourcing PC purchases, maintenance, training and the overall care and feeding of networked systems is a very rapidly growing market," said Ladd Willis, executive vice president at First Manhattan Consulting Group in New York.

Even though reduced costs are touted as one of the key factors driving the desktop services market, it still remains unclear precisely how much--if at all--companies are saving by off-loading support responsibilities to outsiders. What many users deem more important--at least for the time being--is the quality, consistency of service and strategic help the outsourcers can furnish.

Helping with specifics

At Chemical Banking Corp., UK thesis basefor example, part of Unisys mission under a three-year, multimillion-dollar desktop services contract is to identify on a case-by-case basis which devices would provide the greatest upgrade pay back, noted John Irvine, a vice president at the banks technology and operations unit.

Meanwhile, IBM has helped McDonnell Douglas Corp. to significantly improve the consistency of service to 50,000 LAN users by consolidating more than 35 help desks into two, according to Joe Deney, vice president and general manager of information systems.

The bottom line, according to Young, is that even in the absence of firm cost savings figures, "a lot of companies are realizing somebody else can do it better, cheaper and/or faster."