Power Tools 1993 October - Disc 2/Power Tools (Disc 2)(October 1993)(HP).iso/stools/newstalk/systems/nts9305.txt

Text File | 1993-05-19 | 88KB | 2,123 lines

                 HP COMPUTER NEWSTALK - MAY 1993


                             Side A


     LEO:      Welcome to the May edition of HP Computer
NewsTalk.

     JOANNE:   Your audio source for HP sales information.

     LEO:      I'm Leo Laporte.

     JOANNE:   And I'm Joanne Greene.  This audio tape
replaces Radio HP and WKSG, combining the information from
both tapes.  This month we begin with a new name for the
Green Team.

     LEO:      Followed by information on some key channel
partners and programs to help you sell more effectively.

     JOANNE:   We'll take a look at systems, first from an
overall perspective.

     LEO:      Then at action in the HP 3000 arena, followed
by HP 9000 Series 800 news.

     JOANNE:   Side B begins with information on
Workstations.

     LEO:      And we round things out with a visit to
Industries.

     JOANNE:   Each section will be preceded by a one second
pause.  It gives us time to catch our breath, and it gives
you a chance to fast forward to the sections that most
interest you.

     LEO:      And this month, we're going to make it a
little easier to keep track of sources for more information.
Instead of rattling off a list of phone numbers and hotline
subjects at the end of every story, we'll refer you to the
reference list that
comes with this tape.  You'll find all the numbers you need
right there.

     JOANNE:   And don't forget that other insert--the
Feedback Form.  Let us know specifically what you like and
what you don't like about this month's HP Computer Newstalk.
We've already incorporated some of your suggestions and
we're anxious to hear more.

     LEO:      Okay.  So let's get started.  In this edition
of HP Computer NewsTalk:

     JOANNE:   How the new HP DIRECT can make your job
easier.

     LEO:      Applix is incorporating OpenMail into its
Asterix integrated applications.

     JOANNE:   A clarification of the user-based pricing
model for the HP 3000.

     LEO:      Series 800 success stories at Timex and
Equifax, along with some big wins in aerospace and
manufacturing.

     JOANNE:   In workstations, Jannine Iacobucci will talk
about the PA-RISC developer program.

     LEO:      A special Series 700 promotion from Frame
Technology.

     JOANNE:   And an update on the cluster computing
program

     LEO:      In telecom news, Bill Murphy of HP Global
Accounts is back with an interview with Dave Cox, CIO of
Northern Telecom.

     JOANNE:   And there's a whole lot more.  So listen up,
HP Computer Newstalk is about to help you find new ways to
make sales.



     LEO:      We kick things off with channel partner news
of special interest to the field.  Okay, Joanne.  How many
channel partners could a channel partners' Sales rep, if a
channel partners Sales Rep could rep partners?

     JOANNE:   Six woodchucks!

     LEO:      No.

     JOANNE:   No.  We're just trying to get our terms
clear.

     LEO:      Okay.

     JOANNE:   Everybody has to listen up.  This is not
simple.  We have been using a lot of different names to
describe the HP employees who work with our channel
partners:  channel partners sales reps, Green Team, Sales
Force 38, Irving...

     LEO:      Irving?  We don't call them Irving.

     JOANNE:   Well, I threw that in to see if you were
paying attention.  Good.  You are.  We would like to clarify
things a little.  From now on, when we talk about those
wonderful people who work in partnership with HP--the
resellers, ISVs and so on--we will call them channel
partners, and their sales reps will be called channel
partners' sales reps.

     LEO:      So the sales reps for channel partners are
channel partners' sales reps.  That makes sense.

     JOANNE:   Right.  And the HP people who work with
channel  partners' sales reps will be called HP channels
sales reps.  No "partner" in the HP term.

     LEO:      All right.  HP channels sales reps.  So if
you work for HP, and you work with the sales reps for
channel partners, you're an HP channels sales rep.

     JOANNE:   By George, I think he's got it.  If you're
not sure which you are, just check to see who signs your
paycheck.

     LEO:      And what if it says Lou Gerstner at the
bottom?

     JOANNE:   Then you shouldn't be listening to this tape.

     LEO:      Okay.



     LEO:      Now it's time to look at some key programs
and channel partners to help you sell more effectively.

     JOANNE:   Last month we told you about two sales reps
who used Professional Service Organization's Knowledge
Worker Solutions to add to their commissions.  Well, here's
another KWS win from the PSO.

     LEO:      In a multi-million dollar deal with Equitable
Life Assurance, sales rep Jim Sloose worked with the PSO to
help Equitable consolidate insurance  products from many
separate systems into one easy to read statement.  For
Equitable Life, the PSO's unique technical assistance is
truly value-added.

     JOANNE:   Not only did the teamwork between sales and
the PSO result in over two million dollars in business so
far, but the PSO also identified several other projects that
will lead to follow-on business.

     LEO:      KWS focused technical consultants are trained
in delivering Enterprise Information Services to give your
customers access to tremendous amounts of company
information without risking data integrity.

     JOANNE:   Don't forget, Professional Services sales
over $25,000 are commissionable and count towards quota.
Maybe we'll be telling your KWS success story in next
month's edition of HP Computer NewsTalk.


     LEO:      You've probably seen the HP DIRECT System and
Workstation products catalog and you may know that HP DIRECT
has an 800 number for product information and ordering.  But
did you know HP DIRECT can help you make money?

     JOANNE:   That's right.  Sales reps receive full quota
and commission on orders placed with HP DIRECT by their
customers.  And HP DIRECT can answer many of your customers'
pre-sales technical questions right over the phone.  And
that saves you time while giving your customers the kind of
quick and authoritative information they need.

     LEO:      You know, we're going to make this much
simpler.  We're going to get an actual sales rep on the line
here, Joanne.  Territory Sales Rep Mark Logan explains how
he uses HP DIRECT.

     MARK:     Well, hi guys.  When a customer needs some
basic information or hand-holding, I refer them to HP
DIRECT.  The HP DIRECT support people are very knowledgeable
about the products they sell.  They can answer a wide
variety of pre-sales questions, and that gives me more time
to spend on my more strategic accounts.

     LEO:      I know what you mean.  But what kind of sales
do you refer to HP DIRECT?

     MARK:     HP DIRECT takes care of the low-cost, low-
complexity sales so that I can focus on the bigger stuff.
For example, a good 40% of the transactions this year have
been handled by HP DIRECT, but since that's only generated a
small percentage of my income, around 10 or 11 percent, it
wasn't really worth my time to handle them myself.  HP
DIRECT did all the work, and I just collect the commission.

     LEO:      40 percent of your transactions.  Wow.  Now,
how do you introduce your customers to HP DIRECT?  How do
you tell them about it?

     MARK:     Well, soon after I've closed a deal, I'll
send out the HP DIRECT catalog to my customers and indicate
that HP DIRECT is the best order fulfillment channel for the
products that they have in the catalog.  I tell them that
"I'm on the road all the time, so you don't have to wait for
me.  At HP DIRECT there's always a person at the other end
of the phone.  And the turnaround
time is very streamlined."  The HP DIRECT service is a plus
for me because I'm not returning phone calls, but I'm
referring customers to the appropriate fulfillment channel.

     JOANNE:   HP DIRECT gives your customers easy access to
pre-sales technical support and ordering.  They'll get the
same discounts they get through the sales office, and HP
DIRECT is a quick and easy way to get product literature,
pricing, and availability on a variety of products for
workstations and
multiuser systems.

     LEO:      And you sales reps benefit from HP DIRECT
because you can offer your customers all the service they
need without giving up sales time or your commission.

     JOANNE:   Ideal products for customers to order from HP
DIRECT include terminals and X stations, add-on memory and
mass storage devices, supplies and accessories listed in the
catalog, system printers, simple software products, and
field/board upgrades.

     LEO:      So give your customers the HP DIRECT catalog.
Tell them to call when they want to order or even when they
just want more info.  You'll do better and you'll have more
time to sell.



     LEO:      It's time for an update on systems. We'll
start with news on cooperative solutions.

     JOANNE:   Do you ever have a tough time getting
information?

     LEO:      Hey, I'm bombarded with information.

     JOANNE:   But I'm talking about information you need.

     LEO:      Ah.  Well, that's another story.

     JOANNE:   It's been a story for some time now.
Decision makers have been waiting months to get information
through backlogged IT or MIS departments.  In some cases,
the information has just been inaccessible.

     LEO:      And solution?

     JOANNE:   It's a concept called data warehouse.

     LEO:      That's different than operational databases.

     JOANNE:   That's right.  Operational databases run
payroll, sales order information, whatever you need to run
the business.  The idea is to establish a separate database
with summarized information, but current and historical.
End users would have easy access through graphical tools and
applications.

     LEO:      So where does HP come in?

     JOANNE:   HP is introducing its data warehousing
program under the name OpenWarehouse.  It's composed of
best-of-class HP and channel partner tools and databases for
solving customers' business needs.  What HP can do that the
component-based solutions cannot is treat all the various
parts as one whole solution.

     LEO:      You know, Joanne, I read that 90% of Fortune
1000 companies are planning to implement a data warehouse.

     JOANNE:   Yes, but did you also know that only a small
subset of those are planning to use IBM's Information
Warehouse because of its high cost?

     LEO:      Well, so what's so different about
OpenWarehouse?

     JOANNE:   Well, IBM has pushed a proprietary solution
with a proprietary database, usually on a mainframe.
Through Open Systems, we're able to offer a much more
reasonably priced solution.

     LEO:      So OpenWarehouse is brand new?

     JOANNE:   Well, we've already begun selling it quietly
and have had some good successes in pharmaceuticals, in
health care, consumer product goods and utilities.

     LEO:      Oh, yeah.  I remember we did the Red Brick
win last month on this very tape.

     JOANNE:   That's right.  So keep OpenWarehouse in mind.
Ninety percent of the Fortune 1000 is a whole lot of
potential business.



     LEO:      OpenMail is rapidly becoming the de facto
standard for enterprise wide electronic mail, and here's a
perfect example.  Applix, developer of Asterix adaptive
applications and tools, has decided to use OpenMail as the
Asterix E-mail engine.

     JOANNE:   Last year, 29% of all workstations purchased
for commercial use were bought to run Applix products.  This
new relationship between HP and Applix should really help
you move workstations into large organizations.

     LEO:      The suite of Asterix applications includes
word processing, spreadsheet, graphics, and a powerful macro
scripting language seamlessly integrated into one package.
Asterix has always included an E-mail capability through
UNIX mail, but now corporations want more.  Tom Axbey,
Applix Worldwide Director of Marketing, tells us that Applix
clients were demanding a reliable, high performance mail
backbone which meets international standards
like X.400.  The answer:  OpenMail.

     TOM:      We recognize OpenMail as the leading
enterprise wide mail solution, and we're thrilled to be able
to offer customers the combination of Asterix, as the
preferred choice of integrated workstation client
applications, with OpenMail as the E-mail engine.  Mail
enabled applications are of critical importance in today's
global market, with benefits such as improved
communication, document sharing and workflow, Asterix and
OpenMail will make large and small organizations operate
more efficiently.

     JOANNE:   Initially, Applix will offer OpenMail on HP-
UX through its worldwide channels.  HP continues to offer
cooperative computing messaging solutions through its sales
force.  And now, Applix Asterix can be referenced by HP
sales reps as yet another client of choice for OpenMail.



     LEO:      Time for the latest from Systems for the
special look at the HP 3000.

     JOANNE:   We've got a lot of information that should
help with sales this month, including a story on a new ad
campaign, an update on second half ordering programs, and
new manufacturing solutions for the HP 3000.

     LEO:      And we've got a discussion of the changes
that occurred with the December Intro.

     JOANNE:   That's right.  Olivier Helleboid will be
joining us for that.

     LEO:      All coming up.  But first, a hot news flash.



     JOANNE:   The HP 3000's about to get some pretty great
press.

     LEO:      So you're writing an article?

     JOANNE:   No.  It's a new ad campaign.

     LEO:      Oh, REALLY good press.

     JOANNE:   The idea is to boost awareness of HP in the
computer business, in effect taking the Think Again concept
to the nextstep.  In this campaign, we're showing well-
respected customers who've chosen HP systems.

     LEO:      Great.  Where will these ads appear?

     JOANNE:   Well, we're targeting executives in such
magazines as "Business Week" and "Computer World", and also
hitting the HP 3000 Installed Base publications.  And we'll
also be focusing on joint advertising with key channel
partners in target markets.

     LEO:      And all this happens when?

     JOANNE:   Coming this month to a magazine near you!



     JOANNE:   It's time for the Corporate Business System
customer of the month.

     LEO:      A little drum roll, please.

     JOANNE:   Rogers Tool Works of Rogers, Arkansas, wanted
to cut costs and achieve greater performance.

     LEO:      Well, don't we all.

     JOANNE:   Yeah, but they were able to do it.  Rogers
runs HP financial and human resources application software
and ask's ManMan software for manufacturing.  They
consolidated three HP 3000s--a Series 925, 935 and 960--into
one Corporate Business System 992/200 DX, purchased through
ASK.  Their operation was simplified, and they're saving
$65,000 a year!

     LEO:      Why, that's practically your salary, Joanne.

     JOANNE:   No, sir.  Rogers also wisely chose the DX
version of the 992 because it includes performance
management tools for system performance analysis and high
availability software to minimize both planned and unplanned
downtime.  The software and hardware combination is then
bundled together in one product at a discount to the end
user.

     LEO:      You know, I think a lot of Corporate Business
System customers would choose the DX version.

     JOANNE:   Absolutely.  The DX bundle is also available
with the 9X7 systems from the 947 to the top of the line.

     LEO:      All right.  Bottom line to this success
story?

     JOANNE:   Consolidating older HP 3000s into Corporate
Business Systems can simplify your operation, increase
overall performance capability, and save money all at the
same time.



     JOANNE:   I'll bet a lot of you have HP 3000 customers
who might be able to upgrade.  Well, listen in, because
we've got some great promotions for the second half of the
year.

     LEO:      Oh, yeah.  We've got wonderful upgrade
programs with Cognos.  Telesales and Direct are already
working with Cognos to close upgrade orders.  There's good
news for customers with any of the following channel partner
applications.  Are you ready?  Get a pencil:  ASK, MTI, MCC,
Speedware, Computrac, IMS, INLEX, Abacus, ICCS, Smith
Gardner, Infoworld, Delta Management, Spectrum, Jobscope,
DataBase Systems, Multiview or BSA.

     JOANNE:   Take a breath now, Leo.

     LEO:      I'm glad this is on Power Tools.  It's all
written down there.  Just turn your customer over to your HP
channel sales rep for upgrades with any of these
applications.

     JOANNE:   Thousands of our customers are happy running
MMII software on Classic 3000s, but an aggressive promotion
coming on June 1st should make them even happier on a new
MPE/iX system.

     LEO:      Hardware and software discounts plus
consulting and training options make this bridge to the
future a winning plan.

     JOANNE:   And here's a great offer for the second half.
As a way of getting customers to try HP software packages,
we're offering a 60-day free trial of Image/SQL, TurboSTORE,
and Novell netware.

     LEO:      And don't forget about our on-going programs
to help close deals:  We still have peripheral trade-ins so
your customers can upgrade to integrated packages, and
multiple trade-ins so customers can upgrade to a single
system with additional return credits.

     JOANNE:   There's the performance guarantee, where HP
guarantees a certain performance level.  And if it's not
met, we offer a free upgrade to the next processor.  And
finally, Open Insurance is for customers who want the
performance and functionality of PA-RISC, but may wish to
migrate to UNIX in the future.

     LEO:      Commercial Systems Division will be targeting
960 and 980 upgrades so start collecting data on accounts
with these systems.

     JOANNE:   More details on aggressive programs will be
mailed to you in the June sales guide.  For info on hardware
and software discounts, check the insert that came with this
program.


     JOANNE:   Leo, it's time for sports.

     LEO:      Uh, excuse me?

     JOANNE:   Spalding Sports is not just manufacturing
golf balls.  No, they are making big changes in the data
management department.

     LEO:      Well, let me guess.  They want to save money,
increase efficiency and improve customer service.

     JOANNE:   Hey, I couldn't have said it better myself.
And they're doing it with a big move from an IBM mainframe
to an HP 3000 Corporate Business System with client/server.
Specifically, they want to make better use of inventory data
so that the company can ship their products more quickly.

     LEO:      So the HP Model 992/200 is the corporate data
server.

     JOANNE:   Exactly.  The company's about 20%
client/server right now, and it should take several years to
complete the switch.  There's an article under the heading
of "Large Systems" in the March 22nd issue of Computer
World.

     LEO:      Sounds like it's worth checking out.



     JOANNE:   Leo, did you have any idea that half the
installed base of HP 3000s is in manufacturing?

     LEO:      No, I didn't know that, but it doesn't really
surprise me.

     JOANNE:   Many of these customers are extremely happy
with their applications, and hardware upgrade opportunities
exist.  But some customers have expressed a desire to phase
into applications with next generation technology.  Well,
now there's good news.  There are a number of new channel
partner solutions available for manufacturing on the HP
3000.  It's a great opportunity to not only bring the latest
MRP solutions to installed customers, but to sell additional
solutions in many cases.  Right now, Datalogic GEMMS,
ASK's Manman/X, and Fourth Shift's Manufacturing Solution
Series are available.  Third quarter of this year, SAP's R/3
and QAD's MFG Pro will be available.

     LEO:      There are also opportunities to sell
complementary solutions to installed MRP accounts.  One new
package is Dunn & Bradstreet's DF/DRP logistics application.
It was recently ported from the mainframe to the HP 3000.

     JOANNE:   That's right.  And the first new customer to
purchase that application was Dupont.  Check the May 1
edition of Computer News for more information.



     JOANNE:   Here's a success story from a company that's
on the cutting edge in just about every way.  MagneTek has
been around for less than 10 years, and in that time has
become a world leader in the electrical equipment market.
Their major product lines include energy efficient lighting
products, transformers, motors, and generators.

     LEO:      In 1992, MagneTek's annual sales exceeded
$1.2 billion.  This rapid growth, achieved primarily through
the acquisition of smaller companies, created an integration
nightmare.  The challenge facing Roy Phillips, MagneTek's
Director of Logistics, was this:  consolidate and centralize
the sales and
distribution activities of many divisions into a single
enterprise-wide logistics system.

     JOANNE:   Roy, can you tell us how you went about
tackling such a massive task?

     ROY:      Well, the first step was to come up with a
master plan for an integrated logistics system that would
help us serve our customers better, while at the same time
eliminating waste and redundancy.  Now, we named the system
FASST 90, which is an acronym for Fast Accurate Service
Support Transportation system for the 1990s.

     JOANNE:   Can you explain a little more about what
FASST 90 is?

     ROY:      Well, FASST 90 is a collection of integrated
software applications we use to meet the logistics and
customer service needs of our entire organization.  We're
still in the process of implementing in some of our
divisions.

     JOANNE:   How did you go about setting up the system?

     ROY:      Our first priority was to find a base package
that could handle our complex sales and distribution
requirements.  We needed a system that could coordinate 13
manufacturing plants with our distribution network of a hub
and 12 regional distribution centers.  After an extensive
search, we turned to SATCOM, a Mainframe Alternative channel
partner.  Their distribution package is the centerpiece of
the FASST 90 system.

     JOANNE:   Can you tell me how the system has helped
solve your problems?

     ROY:      Well, before FASST 90, we weren't serving our
customers very well.  Because each acquisition operated
independently, our customers had to call different MagneTek
locations for different products.  Now, this had to change.
In 1989, we installed SATCOM's BOSS product on an HP
3000/980 to handle the distribution requirements of one of
our largest sectors.  We then used SATCOM's manufacturing
interface, M-Link, to connect BOSS with the various MRP
systems we were already using:  MM, Manman, and homegrown
systems.  This interface allows us to feed production
information directly into our distribution system and also
pass demand projections back to the MRP.  So now our
customer service representatives have enterprise-wide
visibility of inventory, both finished goods and work in
process.  For the first time, our customers can call one
central location and we can quote ship dates with confidence
while the customer is still on the phone.

     JOANNE:   Roy, why did MagneTek choose the HP 3000?

     ROY:      We already had a number of 3000s installed in
some of our manufacturing facilities and were really happy
with their dependability and price and performance.  We also
were impressed with the applications that run on HP.  Our
logistics system depends on these applications:  BOSS for
distribution, MM and Manman for manufacturing, GAINS for
forecasting, just to name a few.  When we made our decision
to go with HP, it was not only because of the
superior features of the hardware, but also because of the
availability of powerful, proven applications.

     JOANNE:   So how has the system improved MagneTek's
performance?

     ROY:      Response to customers has improved
dramatically.  Not just the time, which is 30% shorter, but
more importantly the vast information available via on-line
inquiry.  Everything from "What's the last PO I placed with
you?", "When did you ship a specific order and who was the
carrier?" to "How many of a specific SKU have I purchased in
the last six months?" can all be answered
while the customer is on the phone.  Cycle time for
replenishment of the regional distribution centers has
decreased by 40%, allowing a reduction in inventory and
increased turns with no impact on service level.  Outbound
transportation costs as a percent of sales has decreased by
one-half of a percent due to our ability to
consolidate shipment.  At MagneTek, customer satisfaction is
number one at a profit.  FASST 90 provides the distribution
system tools to make the slogan a reality.

     JOANNE:   Well, sounds like a win all the way around
for MagneTek, SATCOM and HP, and, of course, your customers.
Thanks, Roy.



     JOANNE:   Great news on printers.  Four new HP 5000
production capacity printers were introduced at the Interex
Computer Management Symposium in Seattle.  The Model F135XP
is the flagship, with extraordinary capacity of up to 210
pages per minute.

     LEO:      Wow.  That matches the top end of IBM's
product line.

     JOANNE:   You bet.  The secret is two-up printing on
the 17-inch print line. It increases not only throughput but
also reduces maintenance costs by squeezing more pages per
linear foot.

     LEO:      Now, what kind of client would have the need
for such a fast printer?

     JOANNE:   Glad you asked.  Three F135XPs have already
been installed at La Camif in France.  You may have already
heard about La Camif's use of the HP 3000 Corporate Business
Systems.  They manage a huge mail order catalog and retail
business with 4½ million customers.  To give you an idea of
their needs, they print 2½ million pages per month.  That
includes the invoice orders,
labels, and packing slips.

     LEO:      What did they do before the F135XP?

     JOANNE:   Well, they had two Siemens Model 2200s.  The
problem with the Siemens printers is that they required a
lot of manual intervention in the printing process and they
offered no direct connection to the HP systems environment
so operators had to run tapes between the HP systems and the
Siemens off-line print station.  An operator had to set up
each individual print job because electronic forms and fonts
also had to be loaded on manually.

     LEO:      Wow.  The HP printers really did provide them
with a more automated process.

     JOANNE:   Definitely.  And as a result, they save
money.  The printers connect directly to their HP systems
and because the entire process is so well integrated, they
can make changes to print jobs on the fly.  Another
important feature that La Camif is enjoying is the desktop
to data center compatibility of the HP PCL printer language.
Forms designers don't have to interrupt production printing
jobs to preview new forms on their LaserJets.

     LEO:      Does La Camif have any plans to expand the
printing application to their retail stores?

     JOANNE:   Yeah, they do.  They're going to print retail
order acknowledgements on local LaserJets.  With HP PCL
compatibility, the host application software can drive any
HP printer in the network.  There's no way that Siemens
could have delivered this level of functionality and
compatibility.

     LEO:      Yeah, that sounds great.  You know, I heard
there were other HP 5000 announcements in addition to new
printers.

     JOANNE:   That's right.  A related announcement came
from HP channel partner I-Data International.  I-Data has a
software product that allows users of IBM's Advanced
Function Printing software to use HP printers.  It works
through the use of an HP 3000 or HP 9000 print server.

     LEO:      Another great opportunity for an IBM offload!

     JOANNE:   Absolutely.  For customers in a mixed HP-IBM
systems environment, HP 5000 printers are for the best
integration to both worlds.  Of course, for volume printing,
the HP 5000 has it hands down.

     LEO:      You know, we've got a ton of information on
the new HP 5000 printer models.  Check our reference list
enclosed with the tape for more information.  The sales
guide provides positioning, configuration and pricing
information as well as competitive data and tips on
prospecting for and closing HP 5000 printer deals.  Hotline
articles with HP 5000 customer references and other more
detailed information are posted on the CSY, GSY and
Mainframe Alternative hotlines.


     JOANNE:   There were a large number of pricing changes
last December, and Olivier Helleboid, Commercial Systems
Division marketing manager, is here to shed a little light
on the strategy behind the changes.  Welcome, Olivier.

     OLIVIER:  Thank you, Joanne.  One major change we did
in December was to move to a user based pricing model for
the MPE/ix operating system and databases sold with the HP
3000.  Customers had been asking for the price of software
to be based on the number of users, rather than on the
processing power of the hardware.  And, as you know, this
also brings us more in line with how operating system and
database software is priced by the rest of the
industry.

     JOANNE:   So the practical effect of the change?

     OLIVIER:  Well, we now have a choice of user licenses
available for each 3000 processor.  For example, on a 957,
you can select 64 users, 100 users, etc., up to an unlimited
number of users.  Prices vary based on what license you
purchase with the system.  This applies for the MPE/ix
operating system without
databases and for the systems sold with either Image/SQL,
Allbase/SQL or both.

     JOANNE:   Some say the HP 3000 isn't priced
competitively with
UNIX systems.

     OLIVIER:  The HP 3000 continues to be priced very
competitively with UNIX systems on a price performance
basis.  First, the HP 3000 typically provides 20% or more
performance increases over a UNIX system based on the same
hardware.  Second, it's really important to compare systems
with the same
functionality.  The HP 3000 systems price includes many
software capabilities such as database, system management
tools, and other utilities which, for UNIX systems, must be
purchased separately at an additional cost.

     JOANNE:   Olivier, let's talk for a moment about the
strategy for pricing other HP 3000 software.

     OLIVIER:  Good.  That's another change we made.  In the
past, the price of HP 3000 software was based on the
hardware processor tiers.  We're still using a tier system,
but instead of being based on hardware, it's based on the
operating system user license that's purchased.

     JOANNE:   Is there a plan for pricing software based on
concurrent users, as opposed to pricing based on MPE tiers?

     OLIVIER:  Yes, where it makes sense.  Our goal is
really to price software based on the way it provides value
to the customer.  Sometimes that means pricing on the basis
of the number of users for that piece of software.  HP Desk
is a good example of that.  In other cases, it means pricing
relative to the MPE tier.

     JOANNE:   For example?

     OLIVIER:  TurboSTORE is a good example of MPE tier
pricing.  TurboSTORE benefits all the users on the system,
not just those operating the product.  Customers with an
unlimited MPE license get more value out of TurboSTORE than
customers with their 64 user MPE license, and thus, should
be paying more for the product.  Again, our objective is to
evolve to pricing based on customer usage and value for each
product.

     JOANNE:   Are there any customers, Olivier, who are
actually seeing price increases with this shift to tier
pricing based on operating system license?

     OLIVIER:  Well, some customers actually benefitted from
price decreases, and particularly those with a small number
of users, while others with large numbers of users did see
increases.  For those customers with prices increases, a
special promotion is available.  They can buy HP software at
the old lower prices until July 31st.

     JOANNE:   How can sales reps continue to be sure
they're up on all the pricing changes for the HP 3000?

     OLIVIER:  Well, we are reprinting the Price Guide on a
regular basis to include any new product restructuring and
changes.  In fact, a new Price Guide is coming out in June,
and it will have configuration examples and summary tables
in the front that will help sales reps understand these new
changes.

     JOANNE:   Thanks so much, Olivier.  We'll talk again
next month.



     JOANNE:   It's time to see what's new with Series 800
systems, and here's Lenny Rosenthal, General Systems
Division Product Line Manager.  Hi, Lenny!

     LENNY:    Hey, it's another big month for the Series
800.  We're pleased to announce a marketing agreement with
Banyan.  Their Vines network operating system is considered
one of the best PC LAN solutions, and Banyan's porting it to
the Series 800.  We also have a couple of success stories.
In one, we'll explain how we convinced an IBM OEM to forget
the RS/6000 in favor of an HP 9000 solution.  And we're very
proud of our success with Equifax.  They
needed help fast, and our production people were able to
build a Model 877 in only five days.  And we'll explain how
we're working with ComputerVision to transition Prime Series
50 customers to HP.

     JOANNE:   I know you've been very busy in the past
month with the Mainframe Alternative program.
Congratulations.  It sounds like HP is really being
successful with its UNIX-based systems.

     LENNY:    That's right.  With the recent multimillion
dollar wins at Meed, Data Central, Boeing, 7-11 Japan, and
Timex, it's clear that HP-UX is shattering the glass house
and invading the data center.  We'll hear from one of the
use wins this month and about the rest of them in the next
few months.

     JOANNE:   Okay, Lenny.  Can you fill us in on the
Banyan story?

     LENNY:    Okay.  On April 16th, at the Banyan Users
Conference, HP and Banyan announced a marketing agreement
making Banyan's Open Vines available on the HP 9000 Series
800.  This is the first port of Open Vines to a RISC, UNIX-
based platform, and it's another example of HP's commitment
to providing industry leading interoperability and desktop
integration.

     Banyan Vines is one of the most popular network
operating systems for Intel platforms.  Open Vines for the
Series 800 will have functionality similar to the Banyan's
offering on the SCO UNIX systems.  Banyan's highly acclaimed
StreetTalk directory services will also be part of the HP
release.

     The HP 9000 Series 800 now has one of the best desktop
integration stories in the industry.  With the addition of
Banyan to our Network Operating System offerings, HP can fit
into more PC LAN environments than any of our competitors.

     Banyan has signed a channel partner agreement with HP,
so Open Vines for the Series 800 will be sold by Banyan and
its authorized resellers.  Look for the first release of
Banyan Open Vines on the HP 9000 Series 800 by late this
year.

     JOANNE:   Thanks, Lenny.


     LEO:      In a battle for the hearts and minds of
Timex, IBM took a licking and HP's mainframe alternative
solution keeps on ticking.

     JOANNE:   Timex was looking to replace an aging IBM
3090-200 at corporate headquarters, and several 4381s and
4361s at six manufacturing sites.  Sounds like a perfect
opening for HP, but there was one little problem.  Timex is
an IBM OEM, and had been an IBM mainframe customer for more
than two decades.  Timex senior management was leaning
strongly toward an RS/6000 solution, but
HP's Mike Collins didn't let that stop him.

     LEO:      Mike brought in a technical team from HP's
Professional Services Organization, PSO, to assist in an on-
site evaluation.  He also put together an Open Systems Pilot
Plan to map out what HP would accomplish during the on-site
trial period.  The customer participated in the creation of
the document through their input and final approval.  This
was essential to get them to buy
into the process and see that HP was adding value.

     JOANNE:   The Pilot Plan became the roadmap for the
evaluation, and kept things moving along the HP side.  This
momentum attracted a growing number of Timex technical
evaluators and got them to spend more time with HP and less
time on IBM, putting the Big Blue reps on the defensive.  HP
was leading Timex through unfamiliar waters.  IBM was just
trying to keep up.  It wasn't long before the technical
evaluators formed the opinion that if Timex was going to
make the move to Open Systems, it had better be with a
company that knew what it was doing.

     LEO:      This win was built from the ground up and was
possible in the end because Timex knew HP was the right
vendor, and the Worldwide MIS Director had the courage to
fight for his recommendation despite the pressure toward IBM
from senior management.  The MIS Director put it best when
he said of the decision, and I quote, "I felt like a man on
the ledge of the 24th floor of a burning building.  I knew I
had to jump, and HP was showing me a better safety net than
IBM."

     JOANNE:   He said that?

     LEO:      He said that.

     JOANNE:   Multiple HP 9000 Model 8X7s are in place at
Timex now running various Oracle-based manufacturing and
financial applications, and everybody's happy.  Especially
Mike Collins, whose tenacity won the sale.  It just proves,
even when IBM has the upper hand at the start, you can count
on HP's ace technical consultants and top flight sales
force.



     JOANNE:   When Bob Strevens told his family he'd be a
little late for Christmas, he had a good reason.  It
involved an HP 9000 Corporate Business server, a billion
dollar information company, and perfect timing.  Leo do you
want to tell the story?

     LEO:      I sure do, Joanne.  Equifax is a one billion
dollar information company providing credit and insurance
information.  They're a big IBM shop with large pockets of
DEC, Sun and NCR hardware.  But they didn't have any HP
gear, at least, they didn't until Bob Strevens made it a
targeted account.  Bob got his foot in the door with a
relatively small workstation order in R&D, but the big
opportunity came when Equifax's growing Accounts Receivables
division needed to double their capacity and centralize
their operations.

     BOB:      Well, I'd been working with the account for
about 18 months, Leo, selling the HP story.  And in
December, they really came through and gave us an
opportunity to put up or shut up.

     LEO:      What had Equifax been using, Bob?

     BOB:      Well, they had 15 General Automation Systems.
These are ADDS systems that were distributed all over the
U.S.  And they run a custom operating software called PIC.
And what Equifax needed to do was to expand their capacity
from about 750 users today up to about 1,500 users, and at
the same time they wanted to go from the 15 distributed
databases onto one box, one database.

     LEO:      Who were you selling against?

     BOB:      Well, you can imagine in the beginning
everybody was in there, but near the end, it came down to
Sequent, Unisys and IBM as the main players, and this was in
about December.  Earlier, Sequoia had been a very, very
strong player.  In fact, it looked like the leading
contender for a while.  But, as you know, they ran into some
financial troubles and, as a result, they were eliminated
by Equifax.

     LEO:      Um-hmm.

     BOB:      In talking with one of their vice presidents
after we closed the sale, I asked where our strengths were
and Paul put it to me--a fellow by the name of Paul Martz--
put it to me this way.  He said that he believed there would
be two companies around in the year 2000:  IBM and HP.
Looking at the UNIX offerings between the two, HP was the
better choice.

     LEO:      Was there anything they didn't like about HP?

     BOB:      Well, they had some concerns, Leo, about the
number of users that we had on installed 890 systems.  And
our software partners from VMark were a big help in relaying
some of those fears.

     LEO:      So they didn't think we could support that
many users?

     BOB:      That's right.  We were unable to show them an
installed site with 1,500 users on it.  But thanks to the
folks at VMark, they came through with some benchmark
information and showed that the 890 could indeed support
1,500 users.

     LEO:      So what did Equifax buy?

     BOB:      They purchased an 890 Series 400 Corporate
Business System.  The total sale was about $1.3 million on
hardware and $65,000 in PSO consulting services, another
$60,000 in first year warranty support, and, if things go
according to plan, I'm planning on another $1 million in
upgrades by the end of the year.

     LEO:      Great.  When will all this be running?

     BOB:      Well, it's operational now.  I made the
initial call last December, December 15th, and at that time
they needed a system operational by January 17th.

     LEO:      That's just a month!

     BOB:      That's one month with Christmas in between.

     LEO:      Oh, man!

     BOB:      Thanks to a tremendous response from the
folks from GSY, the folks at VMark, our local PSO and sales
support people, we were able to order, have a system built
and shipped and installed an interim HP 9000/877 in less
than two weeks.  The 890 was ordered an January, and it was
installed on March 15th, that was two weeks ahead of the
customer's schedule.

     LEO:      It sounds like you got your Christmas
present, even if it was a little late.  Thanks, Bob.

     BOB:      Okay, Leo.  Thank you.



     JOANNE:   Here's a prime opportunity for an
enterprising sales rep.  Now, for the last year or so, Prime
Computer and Computer-Vision have been resellers of Series
800 and 700 systems, respectively.  And Prime Service has
been a reseller for HP service.  Well, Prime Computer has
gone out of business, and Prime service has changed its name
to ComputerVision Service.

     LEO:      So to accommodate these changes, HP has
amended its original agreement as follows.  ComputerVision
Service will no longer resell Series 800 systems.  They will
co-market with HP to their Prime Computer Series 50
installed base and will offer their Open Systems transition
and ComputerVision support maintenance services to customers
with whom they leverage Series 800 systems.  A portion of
this service will be sub-contracted back to HP.

     JOANNE:   That sounds very complicated.  What's the
bottom line, Leo?

     LEO:      Well, mainly, Joanne, it means that HP sales
reps can now sell direct to Prime customers.  And we've
begun a new program to work with conversion tool and
migration service providers to help you leverage sales.
ComputerVision Service is our primary transition channel
partner.  They'll provide conversion
tools and integration networking services to help in the
move to Open Systems.  Other transition channel partners
include System Migration Solutions in Texas and Database
Systems in Phoenix. They'll focus on helping customers with
Midas COBOL and FORTRAN solutions based on the Prime 50
series.  The conversion tool provided includes VMark with
Universe, PI/Open, Unidata, advanced PICK for UNIX--that's
from PICK Systems--and Ultimate Plus from the
Ultimate Corporation.

     Tennyson Williams, Channel Partner Manager in the
General Systems Division, is here to explain how these
changes will affect how you do business.  Tennyson, what
should the sales reps do to take advantage of this new prime
opportunity?

     TENNYSON: Well, Leo, thanks for inviting me.  First we
will work to identify Prime accounts in the sales rep's area
and get with the appropriate ComputerVision Service sales
manager to develop account specific transition plans.  We
will then take the order direct.  ComputerVision Service
will sell ComputerVision support.  However, it should be
noted that the sales rep can bring in other transition
partners, if necessary.

     LEO:      All right.  Now, this does change the sales
rep's responsibilities.  How does the job change here?

     TENNYSON: Well, since the order will come direct, the
HP sales rep is responsible for presenting the Series 800
product and strategy, doing the hardware configuration,
quoting the system, and benchmarking if necessary.  And
clearly, at the end of all this, they can take the order
directly.

     LEO:      I should hope so.  Now, what will
ComputerVision Service take over?

     TENNYSON: Well, ComputerVision will provide the
following value-added service.  They'll provide transition
software, transition planning.  They have a very strong
knowledge of the Series 50 environment.  They have certain
transition tools and UNIX expertise.  They have integration
and networking capabilities, and can provide system level
support in partnership with HP.

     LEO:      So, what I'm getting, Tennyson, is that even
though the relationships and responsibilities have changed,
this is still a great opportunity for our sales reps.

     TENNYSON: For sure.  We view this as a great
opportunity for HP to obtain incremental business.  Having
this close relationship with ComputerVision Service and
other channel partners will help the sales reps enhance
their chance of success.

     LEO:      Thanks a lot, Tennyson.

     JOANNE:   Check the insert that comes with this tape
for phone numbers to call, hotline items, and other sources
of more information, and on Side B we'll have the
announcement of Release 4 from ComputerVision's CADDS5 for
the Series 700.  Well, that's it for Side A of HP Channel
NewsTalk.  Turn to Side B now for a look at Workstation and
Industries news.








                             Side B

     LEO:      Welcome to Side B of HP Computer Newstalk.
You'll find information on Workstations and Industries on
this side.  Joanne, can you play an instrument?

     JOANNE:   No.

     LEO:      Can you sing a song?

     JOANNE:   I've been told to stick to "Happy Birthday"
and not go much further.

     LEO:      Well, we're looking for sales reps who have
musical ability.  If you have an original musical
composition you'd like to send into us on cassette, do.
Send it to Michelle Greeven  in CSO sales force
communication.  We'll pick the best musical composition.
So, again, if you are a musician, whether a singer or
an instrumentalist, send your best original musical
compositions to Michelle Greeven, CSO Sales Force
Communications.  And who knows?  Maybe you'll be a star on
the next HP Computer Newstalk.



     LEO:      We start off with a look at HP's PA-RISK
developer program.  Joining Jannine Iacobucci is Sharon
Hubbard, Channel Partner Program Manager for WSG Market
Development.

     JANNINE:  The PA-RISC Developer program was announced
on March 9th.  Sharon, can you describe what the program
entails?

     SHARON:   I'd be glad to.  The program is designed to
encourage large numbers of commercial DOS and UNIX ISVs to
port their applications from MS Windows and other UNIX
platforms to HP PA-RISC.  We're hoping to increase the
number of ISVs on HP PA-RISC workstations tenfold.

     JANNINE:  How does this program differ from other HP
channel partner programs going on today?

     SHARON:   Well, the idea behind this program is to
stimulate the migration of software applications from small-
and medium-sized independent software vendors to PA-RISC.
The current programs and the HP sales force provide a high
level of technical and marketing support to channel partners
that generate high revenue for HP.  Smaller ISVs can't
always get the attention they need.  This new PA-RISC
Developer program goes a few steps further by making it
easy and profitable for the smaller ISVs to support HP's
UNIX systems-based workstations.

     JANNINE:  Okay.  When you mention PA-RISC, what systems
are you referring to?

     SHARON:   Good question.  Currently, this program is
available to ISVs looking to support workstation products
such as the Series 700.  In the future, it will be
accessible to HP channel partners across multiple product
lines such as the Series 800 and X-stations.  They'll be
able to join this program in a phased
approach by the end of 1993 and throughout 1994.

     JANNINE:  And Sharon, is this program for U.S. only
ISVs?

     SHARON:   No.  The PA-RISC Developer program is
worldwide.  The program's already moving forward in the
U.S., and is administered here by the Chelmsford Workstation
Market Development organization.  Canada should be on-line
within the next month or so, and Europe and Asia-Pacific
should be announcing their programs later this year.

     JANNINE:  How are you going to attract these ISVs to
the HP 9000 Series 700 workstations?

     SHARON:   The program offers a number of different
features to help ISVs be successful with HP on a worldwide
basis.  It's easy to join, and we offer generous development
system discounts, competitive financing, and lease programs
and technical porting support.

     JANNINE:  How does one qualify prospects for the
program?  Is there some sort of selection criteria?

     SHARON:   Yes, there is.  Companies interested in
joining the program must be software developers porting to
the latest version of HP-UX, currently 9.0.  And they must
submit a brief business plan.  The port must be completed
within one year, and the developer must have revenue goals
with HP that year.  They must
have an office in the United States for the United States
portion of the program, and the company must be listed in
the directory of corporations or industry journals,
something that indicates they are a bona fide company.

     JANNINE:  Okay.  Say that I am a qualified prospect.
What happens next?

     SHARON:   Well, to enter the program, ISVs must fill
out an application and sign both a PA-RISC Developer porting
contract and a Demo Development contract.  There's an entry
fee of $600 per year.  Once they're screened, accepted
applicants will receive notification materials and a
membership number.  Then each year participants will have to
be recertified.

     JANNINE:  Okay, Sharon, earlier you mentioned that
there were generous development system discounts.

     SHARON:   Yes.  The PA-RISC Developer program discount
rate for members is 52%.

     JANNINE:  Oh, that's pretty aggressive.  I know HP's
standard demo development discount is only 40%.

     SHARON:   Yes, it is aggressive.  This is one of the
most competitive discounts in the industry.  Right now the
Series 715/33 MHz as well as the 735/CRX, CRX 24Z, CRX 48Z
are all eligible for this discount.  And in the coming
weeks, we'll also have X-Stations available.

     JANNINE:  That is a great offer.  Are there any
restrictions?

     SHARON:   Yes, there are.  In order to get the 52%
discount, a member may only purchase a maximum of five
systems per year of any mix.  Also, they cannot resell the
system for at least a year.

     JANNINE:  Are there any other products discounted at
this rate?

     SHARON:   Yes.  In fact, we have a variety of
development software listed in our membership price list as
well as standard support contracts for both hardware and
software.

     JANNINE:  What other program features would you like
our listeners to know about?

     SHARON:   Well, there's two areas I'd like to mention:
porting support and marketing opportunities.  The porting
support is included as part of the program membership and
provides on-line, read-only electronic access to HP's
support line as well as an 800 number for dedicated porting
support, for reporting porting
problems and support requests.  Portability guides will also
be included as part of this support package.  Once members
are ported to the Series 700, we have a variety of marketing
and channel programs available to help promote their
products to HP's installed base.  Things like catalog
listings, a quarterly newsletter, mailings to resellers, CD
software marketing service, channel
partner training and events, and HP Computer Update
Magazine.

     JANNINE:  Okay.  So now I have a qualified prospect and
they want to join the program.  What's my next step?

     SHARON:   Well, the easiest thing to do is to put the
ISV in touch with the PA-RISC Development program hotline.
They'll receive an information package outlining the
program, key benefits, and a membership application.

     JANNINE:  Sharon, what tools are available to the sales
force looking for more information?

     SHARON:   We have a number of materials available to
the field.  Check the insert that comes with this tape for
the part numbers.

     JANNINE:  If a sales rep has a particular question
regarding the program, where should it be directed?

     JANNINE:  They can call the program hotline and leave a
detailed message or send a fax.  A team member will get back
to them.

     JANNINE:  Well, this sounds like an aggressive program
to recruit new ISVs and applications to HP-UX.  I hope
you'll keep us updated on the program's success, Sharon.

     SHARON:   We certainly will, Jannine.



     LEO:      Next, Jannine has an update on the Cluster
Computing program.  Jannine?

     JANNINE:  Hello.  Today I have with me Diana Headrick,
Marketing Program Manager for the Workstation Cluster
Computing Program.  Diana, I hear you have several items to
update us for the cluster program.

     DIANA:    Yes, Jannine.  There are many things to tell
you about.  First, we have revised our literature.  There's
a new sales kit and a new customer kit available from the
LDC.  We have updated the sales guide with new competitive
and futures information as well as added several success
stories and industry consultant analyses to the customer
kit.  The partners are listed on a reference list attached
with the tape.  Many of the materials in the sales kit are
also available on the Workstation Hotline.  The prefix for
customer materials is CLUST.

     JANNINE:  And I also hear that Task Broker is being
revised.  Is that right?

     DIANA:    Yes.  The new version of Task Broker will be
released in June.  Task Broker 1.1 will have a graphical
user interface and better configuration management tools.
The contact in OSSD is Laura Boivin at Telnet 436-4484.  Her
number is also listed on the reference list.

     JANNINE:  Well, this is good news.  Now why don't we
take a minute to talk about the cluster seminars.

     DIANA:    Yes, Jannine.  As you are well aware, we're
planning several events in the next few months.  On May 13,
we will be running a seminar on Wall Street with Convex and
Scientific Computing Associates, focusing on the investment
analytics industry.  Also in May, we will be traveling to
the West Coast with Convex to present cluster computing
seminars targeting the aerospace, research, and oil and gas
industries.

     JANNINE:  Actually, Diana, the upcoming seminars will
be similar to an event we just completed in Washington, D.C.
for the federal government.  Speakers included Charles
Catlett, Associate Director at the National Center of
Supercomputing Applications; Sam Coleman from Lawrence
Livermore National Labs; Michael Mahon, the principle
architect of PA-RISC at HP; and Bruce Toal, Meta Series
Program Manager from Convex.

     DIANA:    That's quite a cast!

     JANNINE:  Yes, we plan to have speakers of similar
caliber at future events.  If sales reps are interested in
hosting a cluster seminar in their regions, they can contact
me at Telnet 436-5030.  Now, Diana, what's next on the
agenda?

     DIANA:    Jannine, since we are doing so much with
Convex, I want to clarify our relationship with them.

     JANNINE:  Well, Convex is both an ISV and a VAR, right?

     DIANA:    Right.  As a VAR,, Convex can sell a cluster
of HP workstations loaded with Convex software.  The HP rep
is protected because he or she still receives a commission
for the HP hardware sold by Convex.  Additionally, the HP
rep can sell the hardware and bring in Convex to sell their
software:  NQS+, COnvex PVM and MLIB.

     JANNINE:  And what about the MetaSeries?

     DIANA:    Only Convex sells the MetaSeries, which is a
Convex supercomputer integrated with a cluster of HP Model
735  workstations.  So once again, the HP sales rep receives
a commission on those workstations.

     JANNINE:  Okay.  So when would an HP sales rep call
Convex?

     DIANA:    When a customer needs help designing the
solution, porting and parallelizing the applications, he or
she could call Convex.  Also, if the customer needs a faster
interconnect than the standard networking products available
from HP, Convex has a solution integrated into their cluster
offering.

     JANNINE:  So call Convex when your customer needs extra
help?

     DIANA:    Exactly.

     JANNINE:  Okay.  So when should a sales rep not call
Convex?

     DIANA:    There are some customers who are experts in
building clusters.  These customers don't want help and
don't want to spend any more money than they have to.  Also,
the customer may have decided to use a different cluster
software package like NQS from Sterling or Network Linda
from Scientific Computing Associates.  Then the HP rep would
sell the cluster without Convex.

     JANNINE:  Okay.  Any more news regarding Convex, Diana?

     DIANA:    Yes.  Convex recently announced that they
will be using the HP-UX ABI--that stands for Application
Binary Interface-- on their MPP machines to be delivered in
1994.  This means that HP clusters as well as the simple HP
workstation, will be binary compatible with Convex's MPP.

     JANNINE:  So that's desktop to supercomputer
compatibility.

     DIANA:    Yes.  It's a story no one else can tell.

     JANNINE:  Great.  Thanks for the update, Diana, and
keep us informed on the cluster computing program.



     LEO:      Our next story from Jannine this month is
about a new promotion that Frame is running for HP
Workstations.  Jannine's guest, Pat House, Executive Vice
President of Marketing and Channel Sales.

     JANNINE:  Pat, we heard from Mike Gallup who was at
your National Sales Meeting that Frame's running a great
promotion for HP Workstations.  Can you fill us in?

     PAT:      It's true.  It's a special price promotion of
$595 for FrameMaker personal licenses for the HP 700 Series.
That's more than 60% off our regular retail price.  This is
a perfect opportunity to increase workstation sales by
offering your customers FrameMaker.  And just in case they
didn't know, tell them that FrameMaker is the #1 selling
UNIX document publishing program as tracked by Dataquest for
creating documents from one page to 1,000.  To insure the
success of this promotion, Frame is advertising in such
publications as HP Professional and Open Systems Today.
We're also sending out direct mail to our customers and
prospects.  Frame is also actively recruiting HP resellers
to become Frame resellers to maximize the Frame and HP sales
and align our reseller channel strategies.

     JANNINE:  Pat, can you tell us a little bit about Frame
technology?

     PAT:      Sure.  Frame technology is a worldwide
provider of document information management solutions for
the creation, the management, the electronic distribution,
and the retrieval of critical business and technical
documents.  Frame's award-winning products provide full file
compatibility across networked, UNIX workstations, PCs
running Microsoft Windows, and Apple Macintosh computers.
Let me also mention that Frame's won numerous product
awards including Best Product from PC Magazine in 1992, and
the coveted #1 Authoring Program from Software Digest
Ratings Report, a renowned industry expert for independent
testing.

     JANNINE:  What specific products does Frame offer?

     PAT:      We offer the complete client/server document
solution beginning with FrameMaker, the premier document
creation application; FrameViewer, the market leader in on-
line electronic document distribution; FrameBuilder, a new
product and a powerful environment for developing and using
structured document application; and our Datalogics batch
server product, DL Composer.
FrameBuilder, by the way, will be available this May, and
our first 10,000 licenses will be shipped on HP-UX to a
major telecommunications company.

     JANNINE:  And Pat, where can a customer buy Frame
products?

     PAT:      FrameMaker is our shrink-wrapped, channel
ready product and is available through Frame's authorized
resellers.  FrameViewer, our electronic distribution
product, is also available through Frame's authorized
resellers, most of whom are also HP's authorized resellers.
FrameBuilder and Datalogic's DL Composer are available
through Frame's direct sales force.

     JANNINE:  How can HP and Frame work together?

     PAT:      Well, on the direct sales side, we can work
closely with HP sales- and industry-focused groups on
targeted industries such as aerospace, financial services,
electronics, automotive, telecommunications,
pharmaceuticals, and other key vertical markets for selling
the client/server document information management solutions.
On the reseller side, we will continue to create more
Frame/HP promotions and programs to increase awareness and
sales in the reseller channels.  1993 is the year for Frame
and HP to close many successful deals together.  We are both
the recognized leaders.  We have the hottest products in the
industry.  And we have our sales and reseller strategies
aligned for success.  And we have a hot new promotion,
FrameMaker for $595, to win sales.  Good selling!  For more
information on the $595 special price promotion,
please contact your channel sales representative within HP,
Joanne Parker.

     JANNINE:  Well, thank you, Pat.

     PAT:      You're welcome.



     JOANNE:   HP and Computervision are teaming up, and
Jannine Iacobucci has all the details from Bill Hosford, HP
Marketing Account Manager for Computervision.

     JANNINE:  So, Bill, what's all the excitement about?

     BILL:     Well, in 1992, Computervision was #1 for
sales of mechanical CAD/CAM/CAE.  This month, they're
announcing CADDS5 Release 4 on the Series 700.  This
combines the fastest workstation with the #1 selling
mechanical software.

     JANNINE:  And what about other products from CV?

     BILL:     Several announcements have been, or will soon
be made, by CV.  In December, they announced Medusa, the 2-
D, 3-D design and drafting software.  On March 15th, Theda
Revision 3 was announced.  It's the printed circuit board
design package.  Sometime in the near future, CV's planning
to announce Dimension III, the AEC software, and System 9,
the GIS software.

     JANNINE:  Bill, this sure sounds like the sales force
will have more than enough opportunities to sell CV and HP
solutions.

     BILL:     I'd say so, Jannine.  HP hardware and CV
software are a win/win.  The fastest workstation on the #1
CAD/CAM/CAE software.

     JANNINE:  Thanks, Bill.



     JOANNE:   Now for our Industries section, we start with
the latest Telecom news.

     LEO:      There's a revolution going on in
telecommunications services, and HP hardware and software is
leading the way.

     JOANNE:   In the '90s, telecommunication subscribers
will be asking more of their providers, ranging from simple
services like call waiting and call forwarding, to
sophisticated capabilities like ISDN, virtual private
networks, alternate billing, televoting, and mobile
communications.  These new services are all part of the
Advanced Intelligent Network, or AIN.

     LEO:      Telecommunications Service Providers are
looking for effective ways to implement AIN, and HP is ready
with tools and middleware to start building the solutions
for this market on the verge.

     JOANNE:   Jean-Marc Bonora, of our Telecom Systems
Business Unit, is on the line from Grenoble, to describe
these tools and give us an idea of the strategy to go after
this market.  Jean-Mark, what is the overall objective for
our AIN products?

     JEAN-MARC:     Well, that's to help our customers
meeting their own objectives.  But as to quicker develop and
deploy new services, we focused on operators or switch
vendors such matters while moving towards open architecture
to face a multivendor world.  An important focus is made on
mobile and personal services.

     JOANNE:   What products are available today?

     JEAN-MARC:     We've got already a wide range of
products, starting from our S7 platforms in compliance with
European and worldwide standards like CCITT, and the
American-North American ones based on ANSI.  We've got to
provide products like home location registers, based on the
TSM standards for Europe and the rest of the world, and are
moving toward IS21 for the U.S.

     JOANNE:   What are the sales opportunities right now?

     JEAN-MARC:     We should concentrate our attention on
mobile.  Mobile is really the segment where we can make
money today.  And this is also where our partners can play
an important role developing solutions on top of our
platforms.

      JOANNE:   And what does the future hold?

     JEAN-MARC:     The future is moving to more and more
multivendor environment.  That's why we are concentrating
our effort on these open architectures.

     JOANNE:   How should a sales rep approach, say, a
regional Bell or Telco today for AIN?

     JEAN-MARC:     Even if our primary focus is with switch
vendors, because this is how we can make a lot of sales, we
have to create the pool approach with operators.  So we have
to answer the LANs or big LANs with our development
platform.  And also participate to their trials like with
U.S. West or GDE to demonstrate our expertise on this highly
technical subject.

     JOANNE:   Well, thank you, Jean-Marc.  That was very
enlightening.  Thanks for being here today.

     JEAN-MARC:     You're very welcome, and thank you for
letting me explain our strategy.



     LEO:      Bill Murphy of HP Global Accounts joins us
now in a conversation with Northern Telecom's CIO, Dave Cox.

     BILL:     Well, thanks, Leo.  And thank you for joining
us today.  By popular demand, we are continuing our
tradition of executive interviews, both with HP executives
and senior IT professionals from throughout the industry.
And today, we're very pleased to have with us Dave Cox.
Dave is Vice President of Information Systems, and Chief
Information Officer of Northern Telecom.  Dave, great to
have you with us today.

     DAVE:     Well, thanks, Bill.  It's great to be here.

     BILL:     Dave, to start off, tell us a little bit
about Northern Telecom overall.

     DAVE:     Well, Bill, Northern Telecom is a large,
worldwide manufacturing company in the telecommunications
business.  We're the leading global supplier of fully
digital telecommunications switching systems.  Our revenue
in 1992 was about $8.4 billion.  It's up 3% over 1991 with
profits up about 8% in the same time period.

     BILL:     That's always good.

     DAVE:     Yeah, that's terrific.  It was a record year
for us, actually.  We had more than 50 manufacturing sites
around the world.    And, I guess, really, it's been quite a
change in the last 3 or 4 years in the company in terms of
our distribution of revenue.  Four years ago we were
basically a North American
company.  In 1992, 25% of our revenue was from outside the
North American continent.

     BILL:     So you've had a real push to grow outside of
North America?

     DAVE:     Absolutely.

     BILL:     Tell us a little bit about your information
technology function:  budget, staff, those kinds of things.

     DAVE:     Well, the staff is in the range of about
2,200 and our budget is $400 million a year, and we spend
about $150 million in capital.

     BILL:     Let's talk a little bit about specific goals
for the organization, for your organization, and also MT as
an overall entity.

     DAVE:     Well, let's talk about Northern Telecom
itself first.  As far as the business is concerned,
certainly one of our primary goals is to become a global
organization.  We've been, as I said earlier, basically
based on North America.  So the transition from a North
American outlook to a global capability is
certainly one of the key business drivers for the
corporation.  The second part of that is that our history
has been from basically being a product- and technology-
driven organization, we want to become more customer- and
market-driven.  So I would say that those are two primary
business driver like goals for Northern at this point in
time.

     BILL:     I'll say.  It sounds like another large
company that I'm familiar with.

     DAVE:     Yeah, I think you could change the name quite
easily.

     BILL:     Yeah, I think you could.  Let's talk a little
bit about your information technology goals, especially how
they relate to the overall business goals.

     DAVE:     Well, Bill, when we restructured the overall
corporation three years ago into global product
organizations and geographic market business unit, we
restructured the information technology organization to
report direct line to me so that now, the whole organization
across the globe is part of one seamless organization.

     BILL:     So you have direct responsibility for
information
technology at NT.

     DAVE:     That's correct.  And we're closely coupled
with the business units because I have executives in
information technology who are part of the management teams
of each of the business units across the corporation.

     BILL:     So you have somewhat of a matrix structure so
you're very tightly coupled into the businesses.

     DAVE:     Absolutely.  It's the only way to run it.

     DAVE:     As the chief information officer basically
with the total IS responsibility throughout the firm, you've
outlined some goals for IT and also some overall business
goals for Northern Telecom.  How are you going to achieve
those goals?  What are you going to do?

     DAVE:     Well, we've started with essentially two
primary changes.  One was to globalize the infrastructure to
rapidly evolve from our basic historical mainframe
environment to a client/server technology base across the
globe on basically an integrated platform.  We've done that
by reducing significantly the number of mainframes that we
have in the system, also by adopting an Open Systems
strategy and a UNIX strategy more than four years ago.

     BILL:     You made that decision early on.

     DAVE:     Yeah.  I would say that we were very much an
early adopter.  In fact, I can show you scars to make that
point.  We've learned a lot about what it takes to provide
Open Systems, client/server computing for mission-critical
application.  And, in fact, almost all of our mission-
critical capabilities today are based on Open Systems
strategies.

     BILL:     So you've actually implemented the technology
in running mission-critical applications in an open
client/server environment with a UNIX operating system
today.

     DAVE:     Absolutely.

     BILL:     How has that changed affected the IT spending
specifically as a percent of revenue?

     DAVE:     Well, we've done a number of things, and I
would say that the simplest way to point it out is just say
that we've moved from, I think, 5% of revenue as our total
expense base in '91 to 4½ in 1992, and we expect to see it
go below 4.3 in 1993, while at the same time absorbing
tremendous growth in the workload in all of our
environments, both computing and network oriented.

     BILL:     So you feel you've been able to provide
additional functionality to your users as you've decreased
the percent of spending.

     DAVE:     Oh, absolutely, without any doubt.  And we
provided better service.

     BILL:     As I talk to a lot of chief information
officers in large firms, that's very high on their list.
They've got to get the rate of spending down but they've got
to fulfill the needs of their users at the same time.

     DAVE:     Absolutely.

     BILL:     Now, Dave, as you've made that transition,
you've chosen an information technology partner to do that
with.

     DAVE:     Yeah, Bill, we have.  And I suspect you know
it's you.

     BILL:     Yeah, and I suspect you know you wouldn't be
on the show if it wasn't us.

     DAVE:     Right.

     BILL:     But seriously, as you look for an information
technology partner, what do you really look for?

     DAVE:     Well, you've said the key word, Bill.
Partner.  We're looking for long-term, strategic, through
thick and thin kind of relationships.  And I really break it
down into three basic things.  We're looking for leadership-
-which is more than just price performance.  It includes the
technology and the continued
evolution of that technology in the direction in which we're
moving.  It includes performance.  It includes quality.  It
includes, not only that, but your management practices.  In
addition, I made the comment about trust.  If we can't share
our values and our visions in an open fashion with you, and
you with us, it's awfully hard for us to make the kinds of
investments and the decisions we need in the longer term.
So being able to trust that partner with what you're doing
and your deepest, if you like, secrets, I think is a
critical part of that partnership.

     BILL:     So we need to be able to open up in terms of
directions, technology, you know, what we're doing, where we
see things going.  At the same time, working very closely to
you, with you, to understand your business and the direction
of your business so we can match our technology with your
real business problems.

     DAVE:     Right on the money.

     BILL:     Okay.  One last question.  This is my
favorite, my famous elevator question.  This is a scenario
if you walk into an elevator and say one of our reps is in
the elevator with you, and he's got two minutes to get your
attention and would get an appointment, what would that
person say to get your attention such
that you'd actually say, "Gee, I want to talk to you some
more."

     DAVE:     It certainly wouldn't be just talking about
technology.  And not boxes or that sort of stuff.  To get my
attention, he's going to have to talk about what I can do or
he can do to help me provide greater value to my customer.
And I know these words sound overworked, but simple things:
time to market.  How do I improve it?  How do I break
through in my capacity to deliver product to the market
faster, sooner, with higher quality.  Customer satisfaction.
What can we do to improve the way our customers see us?  How
we're simple to do business with.  How the quality of our
product is reflected in what they provide to their
ultimate customer.  And lastly, perhaps, how can he help me
with globalization, because every major corporation today is
struggling with these same kinds of issues.  How do we
differentiate ourselves?  Our capacity to deal with these
three issues, in my opinion, will make or break us in the
future.  Those are the things I'm interested in doing.

     BILL:     And those are your business issues.  They're
not your product and technology issues.

     DAVE:     Absolutely.

     BILL:     So really, it's helping you solve your
business problem.

     DAVE:     That's right.

     BILL:     Okay.  This has been great.  We don't want to
take a lot of time out of your very busy agenda, but let me
again thank you very much for taking the time to be with us.
We very much appreciate it.  You're a valued HP customer and
have certainly been a terrific spokesman for us over the
past, and I appreciate you being with us and what you said
today is really going to be very helpful to our
organization, so thanks a lot.

     DAVE:     It's my pleasure, Bill, and the feeling is
mutual.  I mean, the partnership, I think, is really
working, and it's having, I think, excellent results for
both of our organizations.

     BILL:     Dave, thanks a lot, and thank you again for
joining us on today's show.

     DAVE:     Thank you, Bill.



     LEO:      It's always enlightening to hear from
executives facing unique IT challenges.  Oh, on that note,
here's your chance to hear Lou Platt's presentation to local
CEOs at an executive seminar held earlier this year at
Cambridge Technology Group in Boston.  Lou stresses the fact
that business as usual won't guarantee success in the '90s.
He emphasizes the vital role that
information technology can and should play in supporting
business strategy.  Many HP IT examples are shared.  To
order this tape, send a Desk message to Carol Grant at HPTV
with your location and enter the number for billing
purposes.  The tape will be available at the end of this
month.



     LEO:      It's time once again to take a look at the
issues facing our customers in the auto industry.  Here's
HP's Auto Industry Program Manager, Claudia Devaux, with
Autoviews, and a look at the Agile Enterprise.

     CLAUDIA:  Members of the Red 2, Discrete Industry Sales
Team are well aware of the high level seminar series going
on now through June on the Agile Enterprise.  Let's talk
about agility today starting with the definition.  Agility
can be defined as the characteristic that allows an
organization to thrive in an
environment of constant and unpredictable change.  Now, I'd
like to provide an automotive industry view on agility by
sharing some of the insights of Donald Runkle, Vice
President of Advanced Engineering at General Motors.

     Runkle points out that there have been three
manufacturing paradigms since the Industrial Revolution:
craft production, mass production, and lean production.  The
fourth paradigm is agile production, and Runkle maintains
that it will be as important to the 1990s and the new
millennium as lean manufacturing was to the 1970s and '80s.
The need for agility is simple.  There are no facts about
the future.  We much have agile organizations in
manufacturing to deal with whatever happens.

     One problem with American manufacturing is the use of
outdated strategies.  Basically, we use mass production
strategies when high productivity is achieved from lean
strategies.  If we aren't careful, we will miss yet another
important strategy:  agile.  Runkle insists we have
technical weaknesses in development and production.  Again,
we risk letting another country develop the knowledge of
agility.  That's exactly what happened with lean.

     And we have neglected our human resources.  Runkle
believes that leveraging our human resources is key, since
science and engineering must be used to leverage the impact
of a person's decision making capabilities on the success of
the enterprise.  We have here a major shift from the
previous focus on using science and engineering to leverage
the musculature, physical skills, and dexterity of the
individual.  Runkle suggests that government, industry, and
academia cooperate to develop the knowledge, the rules, and
the enablers that allow our industrial base in America to be
agile.  To get started, we can work together on such things
as intelligent manufacturing, rapid prototyping, and process
modeling.  The bottom line is that we must win at
manufacturing if we are going to win as a nation in terms of
jobs and wealth.

     That's the auto view on the agile enterprise.  I'm
Claudia Devaux.



     LEO:      Here's a success story that's a break from
the ordinary.

     JOANNE:   A breakthrough sale of business process re-
engineering services to an aerospace company.

     LEO:      The company is Lockheed Sanders.  And for
those who've asked, "Can HP sell into this mature industry?"
the answer is a resounding, "Yes!" thanks to HP sales rep
Bill Green and PSO Technical Consultant Nancy Flanagan.

     JOANNE:   This was a very special partnership.  Bill
really qualified the account and identified the issues.
Instead of focusing on only selling hardware  to Lockheed
Sanders, he worked to find out what they really needed for a
total solution that included hardware, software, and
consulting.  After talking with senior functional
management, Bill learned that they were most concerned
about a brand new electronics board design process that just
wasn't working.  So he brought in PSO technical services and
Nancy Flanagan.

     LEO:      Nancy, what did you do when Bill brought you
the Lockheed Sanders account?

     NANCY:    Well, in the first meeting with the customer,
it was obvious that the organization was lacking the
specific business objectives needed to drive their re-
engineering efforts.  The customer agreed, and this provided
me with an opportunity to position HP's strategic planning
services.  We conducted a successful workshop to establish
business objectives which will reduce their product
development cycle by 50% over the next five years.  The next
step are applying meaningful metrics to optimize critical
processes.  Then we can look at how to help the customer
implement the right combination of process and technology
improvements to align with their strategic business
objectives.

     LEO:      So, Bill, were there competitors involved
here?

     BILL:     Oh, yeah.  Every major aerospace systems
integrator under the sun was involved.  And, in fact, one of
the systems integrators didn't have the  resources to attack
the problem and wanted HP to sub back to them.  Lockheed
Sanders, though, saw us as a peer with our knowledge base
coming from our own experience as a manufacturer.  So we had
a lot of credibility in their eyes when we were offering
solutions to their management.

     LEO:      But, Bill, where is the beef?  You didn't
sell any hardware to them.

     BILL:     Oh, yeah.  I know.  I take flack for that.
Not yet.  The real need in their minds was process
consulting.  But I'll tell you, once they dig into the
actual re-engineering process, they'll have to look very
hard at our high performance integrated CAD and CAE servers
and clients.  We've really offered them something nobody
else can offer them.  I doubt any of our competitors has had
the opportunity to sit with senior engineering management
and help them solve tough process problems like we have.
You know, even if you sell a company hardware and work
closely with them as a systems integrator, you're never
really guaranteed the next sale.  But here, we're delivering
intellectual property that nobody else can offer, and I
really defy our competitors to match that.  Our
relationship has also opened up other opportunities for
major sales and partnership within Lockheed as well.

     LEO:      Jim Mosakowski, Electronics and Aerospace
Industry Marketing Manager, do you have anything to add
here?

     MOS:      Leo, this sale is typical of what makes HP
great:  executive selling and value added technical
consulting.  And this is not a unique situation.  The
aerospace industry is deeply committed to process re-
engineering right now, as are other discrete industries like
electronics and automotive.  They're all
linking their design process with manufacturing with an eye
to their critical need to reduce costs.  We've got a service
they really need, and it's a great way to open a door to
even bigger sales of hardware.

     LEO:      Great.  Thanks, Mos.  And congratulations,
Bill and Nancy.

     JOANNE:   And that's it for the May edition of HP
Computer Newstalk.  We hope you've enjoyed our stories, and
that you've found one or two items that will help you to be
more successful.  Don't forget to fill out the feedback
form.  We want to know what you think.

     LEO:      So on behalf of Joanne Green, Jannine
Iacobucci, and all our contributors, I'm Leo Laport wishing
you happy sales!

     ALL:      [Singing]  Happy sales to you...

     MOS:      This is one of my favorite all-time songs.
You guys can't ruin it.

     ALL:      Song continues.


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