AT&T/NCR Company Statistics AT&T Company: American Telephone & Telegraph Location: New York, New York Founded: 1885 CEO: Robert E. Allen 1991 Revenues: $3,000 million 1991 Service Revenues: $1,299 million (est.) Service Employees: 9,600 NCR Company: NCR Corporation Parent Company: AT&T Location: Dayton, Ohio Founded: 1885 CEO: Robert E. Allen 1991 Revenues: $6.3 billion 1991 Service Revenues: $2.7 billion Service Employees: 19,000 This profile is combined to reflect the ongoing strategy in the AT&T/NCR service strategy and they become one entity. The profile will focus on AT&T's network services and NCR's PC/LAN and Multivendor support services. Products AT&T's extensive product line includes: StarLAN network; AT&T and NCR computers; computer accessories; PC/PBX connections; printers; printer accessories; asynchronous data terminals; SYSTIMAX premise distribution products; connectivity products; modems; DSUs; CSUs; muxes; and large, small and intermediate voice communications products. In addition, AT&T is in the credit card business and provides added-value financial and leasing services for AT&T and other equipment. NCR produces point of sale terminals, automatic bank teller machines, and computers. NCR computers range from small business systems to large, general purpose processors. NCR produces IBM compatible computers as well as computers based on AT&T's version of UNIX. Service Mission/Target Market AT&T's mission is "to apply the talents, knowledge and skills of our people to assure the company's place as the global leader in enabling customers to reap the benefits of information technology." In terms of service, AT&T proclaims a total commitment to systems uptime. AT&T believes that every customer, large or small, has a right to this service. NCR Cooperative Support Services group's goal is to provide enterprise- wide support. NCR customer support services mission is to help their customers plan and implement solutions which optimize their current operations and investments. NCR plans to increase investment in support technology and improve integration of services attributes into all products. It will also aggressively sell and market Cooperative Support Services. NCR's target market includes all businesses that require open, enterprise-wide systems. It is particularly strong in the financial and retail vertical markets. Service Offerings NCR MULTIVENDOR SERVICES NCR offers two versions of Multivendor Services: Multivendor Maintenance and Multivendor Service Management. Coverage days and hours range from "as needed" to seven days a week, 24 hours a day. Multivendor Maintenance NCR multivendor maintenance provides hardware service and maintenance scheduling for NCR and other hardware products. The service offerings include: o Customer premises services o Remote support services o Hardware problem identification and solution o Service parts availability management o Preventive maintenance o Systems performance monitoring NCR is providing maintenance on equipment for the following vendors: ADDS (Applied Digital Data Systems, Inc.) Amdek Corporation Amperif AST Research, Inc. Bizcomp Corporation C. Itoh Electronics, Inc. Centronics Data Computer Corporation CIE Terminals, Inc. Compaq Computer Corporation Computer Terminal Systems, Inc. (CTS) Corvus Systems, Inc. Convergent Technologies, Inc. DataProducts Corporation Datasouth Computer Corporation Datamaxx USA Corporation Diablo Systems, Inc. Digital Communication Associates, Inc. (DCA) Digital Controls Corporation Epson America, Inc. Florida Data Corporation Genicom Corporation Hayes Microcomputer Products, Inc. Hercules Computer Technology Hewlett-Packard Company IBM Corporation ICOT Corporation Intrak Data Systems JDL, Inc. (Japan Digital Laboratories) Lundy Electronics and Systems, Inc. NCR Comten NEC America, Inc. Output Technology Corporation Okidata Paradise Systems, Inc. Penril Datacomm Princeton Graphics Systems Printronix/Anadex QMS, Inc. (Quality Micro Systems) Quadram Racal-Milgo Sun Microsystems Symbol Technologies, Inc. Sysgen, Inc. Tallgrass Technologies Corporation Tecmar, Inc. TeleVideo Systems, Inc. Texas Instruments Universal Data Systems, Inc. (UDS) WYSE Technology Zenith Data Systems Multivendor Services Management NCR's multivendor service management service is designed to help clients manage their warranty and service contracts. Through this service, NCR becomes the single source for support of NCR and non-NCR products. Multivendor services management includes: o Hardware and software service management o Scheduling of all maintenance activities o Diagnosing all service calls to determine the source of problems o Call routing and dispatching o Managing multiple vendor contracts o Performance reporting o Single invoicing for all services NCR PC/LAN SUPPORT SERVICES NCR sells and services the PC/LAN product of its parent - the StarLAN. NCR will provide all of the support services associated with implementing and maintaining the PC/LAN, including the following services: o Planning o Design o Installation of all components o Ongoing maintenance The ongoing maintenance offering provides NCR with a solid revenue stream. The four maintenance options within NCR's PC/LAN support offering are: o Mail-in/depot coverage o Standard on-site coverage, 8 a.m. to 5 p.m., Monday through Friday o 24x7 on-site coverage o Time and materials coverage AT&T NETWORK SUPPORT SERVICES AT&T's network services are provided under its Accumaster Management Services portfolio. This offering includes the following: o Configuration Management o End-to-end management of multivendor voice and data network equipment provisioning o Coordination of equipment moves, changes and rearrangements o Coordination of facility and premises operations o Management of individual circuits, PBXs, and data communications equipment orders o Performance Management o End-to-end multivendor voice and data performance improvement with guarantees o Detailed provisioning and maintenance reports o Network management center measurement reports o Predictive fault identification and management o Fault Management o End-to-end management of multivendor voice and data network equipment o Predictive/proactive fault management o Call receipt and dispatch o Sectionalization and testing o Trouble tracking and status reporting o Trouble referral and escalation o Repair verification o Restoral planning and implementation In addition to these services, AT&T also provides a comprehensive portfolio of services which includes: o Planning o Installation o Start-up support o Value-Added Services o On-site service o Depot service o Custom Software Services o Diagnostics o Education and Training Service Delivery NCR PC/LAN AND MULTIVENDOR SERVICES Multivendor Maintenance and Services Management is delivered by NCR field engineers. To ensure service parts delivery, NCR stores NCR and other manufacturers' parts in its network of service facilities and international parts distribution centers. Multivendor Maintenance and Services Management is available based on the customer's business requirements. Coverage days and hours range from "as needed" to seven days a week, 24 hours a day. Services are implemented through NCR's 400 support offices in the U.S. by 19,000 service employees. AT&T NETWORK SUPPORT SERVICES Within the AT&T service network, a dedicated customer engineer is available to provide on-site response. Response times are four hours for major failures and 24 hours for minor failures. The AT&T dispatch centers are responsible for the dispatching of personnel to the customer site. They also diagnose the problems to determine which type of service is best suited to the needs of the customer. Parts are readily available through this service network to be distributed to the field engineers as needed. For large customers, AT&T personnel can be located on-site. Support services can be provided up to 24 hours a day, seven days per week. Service Marketing/Pricing NCR MULTIVENDOR SERVICES Multivendor Maintenance is available in yearly contracts. The contract price is determined by identifying each piece of equipment to be covered and determining what level of service the customer wants. Contract pricing ranges from $156/year to for a printer to $6,000+ for a minicomputer. When customers with contracts need work beyond their contracted hours of service, NCR's hourly rate for a field engineer is $135 hour. For non-contract customers the rate is $176/hour. Multivendor Services Management pricing is based on equipment and support requirements at each customer site. NCR pricing for this service is custom quoted. NCR PC/LAN SUPPORT SERVICES NCR markets its PC/LAN support offerings through the StarLAN product line. All PC/LAN installation and ongoing maintenance fees are custom based. Time and Materials charges for network maintenance vary and are based on the category of equipment that is being covered. The range for contract customers is $135/hour to $205/hour. The range for non-contract customers is $176/hour to $267/hour. AT&T NETWORK SUPPORT SERVICES Network support services are marketed by AT&T's existing field sales force. These services are primarily designed for the U.S. domestic market, but AT&T is prepared to respond to requests for international support. The program targets Fortune 1000 corporations, the federal sector and state governments. AT&T places the greatest emphasis in marketing this program on its technical expertise and experience in managing complex networks. Contract pricing is developed on a custom bid basis. Pricing is based on the functionality required, hours of coverage, level of technical expertise entailed, other vendors' equipment and services and on-site versus remote solutions. The consulting rate ranges from $120/hour to $175/hour. Perception/Evaluation NCR MULTIVENDOR SERVICES NCR services is merged with the AT&T Computer Systems Services Group. Already a formidable player, the combination of NCR and AT&T is proving to be a multivendor and networking services giant. Because NCR's service organization has enjoyed a strong reputation and high levels of customer satisfaction, it is likely that AT&T services will be brought into the NCR camp. NCR PC/LAN SUPPORT SERVICES NCR's PC/LAN offering is somewhat mixed with AT&T's StarLAN product and the service could be marketed more heavily and clearly. NCR has been called a "quiet giant" in the services arena, and its PC/LAN offerings are no exception. It has the infrastructure to deliver a comprehensive PC/LAN support offering by leveraging the networking expertise and equipment of both organizations. AT&T NETWORK SUPPORT SERVICES While some may perceive AT&T's telecommunications orientation as a disadvantage in today's data oriented market, the company has found that customers are interested in separating their data center needs from their networking requirements when it comes to outsourcing arrangements. AT&T's wide area internetworking expertise will continue to be an asset and expand. Its Accumaster offering is a solid and comprehensive network offering. Canada/Latin America NCR CANADA OPERATIONS NCR's organization is divided into four regions: U.S., Pacific Rim (which includes Canada), Europe and Latin America/Middle East/Africa. NCR's Canadian operations are largely based on the U.S. support offering portfolio. NCR follows a worldwide service strategy where it tries to offers the same service programs and delivery methods consistently on a worldwide basis. NCR Canada has a country manager for service. This manager reports to the Canadian marketing vice president, who in turn, has a dotted line responsibility to the U.S. operations. All U.S. service and support offerings are provided and delivered in Canada, with more emphasis on local strategies. NCR is able to provide a solid and consistent portfolio in Canada. This allows the company to gain market share and open up new business opportunities. The company will continue to expand its installed base and service presence in Canada. NCR LATIN AMERICA OPERATIONS NCR Latin America is part of its Latin America/Middle East/Africa operation. NCR's Cooperative Support Services are offered and implemented on a worldwide basis. The Latin America region enjoys the same offerings as the U.S. NCR provides the exact same portfolio, and is particularly strong in traditional and multivendor maintenance. There is also a focus on project management and systems integration. These are some of the newer services being offered and enhanced in that region. The company does recognize the problem of delivering electronic support or other state of the art support tools to those countries with limited technological advancement. It also notes that there are powerful families in the region that control the local economies and must be dealt with. NCR does have agreements with distributors and TPMs to implement its strategy, and there are some geographic technology limitations. It does recognize the region as a high growth area and will continue to focus its service energies there.