[Info-vax] Services as a source of revenue

[BillPedersen]

On Wednesday, August 22, 2012 8:30:59 PM UTC-4, Jojimbo wrote:
> Please help me here.  When it was digital, they bought someone (or at
> 
> least expanded into the service space) that was going to make
> 
> millions.  Then Compaq was also doing a similar thing.  I was in
> 
> Compaq's making millions service at that time, and making plenty by
> 
> doing VMS and listening to the windows clowns telling me how they will
> 
> be making more soon.  (not).  And then when HP bought EDS who turned
> 
> out to suck?
> 
> 
> 
> I may have all this wrong except that part where Digital/Compaq/HP
> 
> tried to make big money on service and lost billions.  Does any of
> 
> these execs ever get a clue?
> 
> 
> 
> We know the answer is not.  But on a related note, I was hearing our
> 
> CEO and the EVP of finance talking over the cube this afternoon.  Mr.
> 
> CEO was suggesting a celebration for the success of the new system of
> 
> streamlining medical claims.  Me who looks at it every morning a
> 
> watches it fail for weeks on end could hardly stifle my laugh.  Ms EVP
> 
> was happily claiming success.  It's going to be hard to find an excuse
> 
> to avoid this party!

I was in DEC Software Services as a Regional Consulting Business Manager until 1983 and then followed the business quite closely after I left to help with a start-up and do consulting and do not know of any acquisition by DEC in the Services business.

They had a very healthy business with their own customer base - I believe in the $200MM+ range when Compaq came along.  It could have been a good start of the the business to transition to a more services oriented company but was overlooked by corporate management.

It should be noted that Software Services was the organization that was credited with the software service contract revenue as well as the consulting revenue.  It should also be noted that such main stream products as All-In-1 were initially developed and sold as software consulting projects.  While All-In-1 was the most successful there were others - I believe some in the manufacturing arena as well as the performance adviser software.  There was a "catalog" of base software technology which was resold as well.

As JF discussed the services (software and hardware) were part of what attracted Compaq.  More the hardware though, I suspect.

I am not aware of any acquisition by DEC in this arena.  Now, that does not mean it did not happen but it does not fit the pattern that I am familiar with.

Bill.