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Federal Technology Corp plans to enhance its effort to corner the low-end commercial local area network (LAN) marketplace with the introduction of a packaged networking solution for small businesses. Federal Technology, like many systems integrators in the federal arena, is trying to broaden its customer base by moving into the commercial marketplace. Federal, unlike the others, will focus on a market segment most integrators do not address, network of five to 10 nodes. Company officials point out that smaller users have no choice but to go to retail computer stores. Federal's do-it-yourself package will come with warranty and non-warranty service, to be handled by Federal. The initial package will include instructions, interface boards, operating system drives, network operating system software, 10BaseT concentrators and precut coaxial cable. Federal, with the leveraging of its unusual combination of businesses, is trying to turn this market segment into an opportunity.

IBM has announced its marketing plan for its RS/6000 Unix server and workstation products. The plan details how the vendor will compete in an arena where multivendor connectivity is critical. The plan relies heavily on indirect channels, which accounted for 27 percent of all RS/6000s sold in 1990. Company officials expect the percentage to increase to 30 percent in 1991 as more sales are made into new accounts rather than the company's installed base. The company is actively recruiting industry remarketers. A portion of that effort will be targeted on network integrators, who will be needed to market the machines in multivendor environments. Company officials notice a change of focus for the vendor from being the solution to being part of a larger solution. IBM will market a Network Systems Corp router which can connect the RS/6000 to large-scale systems created by vendors like Cray Research and Digital Equipment. Company officials say the vendor is more interested in being part of systems integration.

Altos Computer Systems Inc establishes a task force to study possible relationships between the computer vendor and systems integrators on Unix-related projects. The company says it may complement its 1,200 value-added resellers with systems integrators in order to strengthen its presence in large corporate accounts. Desktop computer vendors Compaq and Dell Computer Corp and Unix vendors HP, NCR Corp, Sequent Computer Systems Inc and Bull HN Information Systems Inc are forming partnerships with VARs and systems integrators. Five managers will lead the task force, which is conducting joint sales calls with several integrators. Observers note that Altos' leading-edge products are suited for systems integrators to handle, but that other vendors have already established integrator outreach programs.

DEC pursues local area network (LAN) integrators to boost its efforts to sell desktop products and services. DEC set up a separate desktop services group in 1989, when it first targeted the desktop integration market, but had limited success in reaching the people who buy LANs and servers. DEC's channel and reseller programs must be reorganized to include representatives who understand the needs of LAN managers and users. DEC has offered LAN Systems Inc a contract to sell and install its Unix servers and connectivity products, but LAN Systems officials are concerned about conflict between their sales force and DEC's direct sales force. LAN Systems specializes in legal, financial and entertainment markets, which would supplement DEC's vertical market expertise. Microcomputer services, software and hardware claim 10 percent of DEC's $12.9 billion in revenue.

Business Systems Group Inc (BSG) is an integration consulting firm specializing in client/server computing. Steve Papermaster, a former Andersen Consulting manager, is its president. The majority of its senior consultants are former Andersen Consulting managers or former Big Six accounting firm employees. For installation of systems, BSG sometimes subcontracts work out to network integrators as its emphasis is on consulting. BSG's major competitors are Andersen Consulting, Perot Systems Corp and Electronic Data Systems Corp. BSG focuses on the oil and gas industry, and it also does business with transportation and health care industries. BSG's revenues for 1990 totalled almost $10 million.

IBM's new local area network (LAN) Value Added Enhancement program allows systems integrators to utilize IBM's products along with other manufacturers' in multivendor network projects. The new policy marks a loosening of restrictions the company previously enforced. The Value Added Enhancement program requires participants to have installed at least 120 LANs, each with a minimum of 30 nodes, within the past year. The program is seen as evidence of IBM's recognition of the value of multivendor environments and systems integrators. Several LAN connectivity products IBM has introduced are catching the attention of LAN integrators, including the PS/2 Model 95 network server, the 16/4M-bps Token Ring card that has bus master capabilities and its OS/2 LAN Server package with Ethernet support.

Lotus Development Corp's Lotus Business Partner program enables integrators and value-added resellers (VARs) to resell 1-2-3 for networked environments. Participants in the program must attend a two-day training course offered by either Merisel Inc, or Ingram/Micro Inc. Both are Lotus distributors, and they are sources from which VARs and integrators may buy 1-2-3. The participating integrators and VARs must also provide application and network integration services using 1-2-3. Lotus Development's major resellers are comprised of storefront computer resellers, software distributors and mail-order businesses. Lotus Development does not offer a network version of 1-2-3, but it is often used in that capacity on Sun Microsystems Inc and DEC platforms.

Compaq Computer Corp's newly-announced Specialized Dealer Program allows qualified resellers to become endorsed network integrators. The program is supposed to be a catalyst for increased sales of Compaq's servers and microcomputers. Qualification includes the requirement of an employed, accredited Compaq engineer who must have at least 40 hours of Compaq training each year. The reseller must offer a specific level of service, support multivendor environments and sell Compaq products including its SystemPro. The reseller must also sell a local area network (LAN) operating system from Novell Inc, Microsoft Corp, The Santa Cruz Operation Inc or Banyan Systems Inc. Customers are able to purchase Compaq's new service, which includes technical support for one year in addition to services from the reseller, for $3,000. Compaq will qualify between 500 and 600 resellers under the program.

Lockheed Integrated Solutions Co is making inroads into the civilian government integration market. The integrator has landed a $153 million office automation contract with the Department of Veterans Affairs for office automation and a $40 million pact with the Department of Health and Human Services' National Caner Institute. These are the first large civilian contracts since it decided to focus on such markets. Analysts are skeptical about parent company Lockheed Corp's decision to move Lockheed Integrated Solutions' headquarters from Fairfax, VA, to Santa Clara, CA, because the new headquarters are far from Washington D.C. Lockheed plans to reopen a Washington area office should the Fairfax move prove to be a mistake. The contract with the National Cancer Institute involves supercomputer integration of a Cray Research Y-MP with high-speed networking, parallel processor and graphics workstations.