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Ingram Micro Inc., the large computer distributor, has announced that it is looking for a new chief executive to replace Jerre Stead. Mr. Stead is infamous in business circles for his New Age management techniques that include tearing down the walls of his office and urging employees to communicate their feelings directly to him. Mr. Stead will remain as CEO until a successor is named, after which he will remain as chairman. His track record at Ingram Micro is questionable as the company has announced it will fall well short of earnings estimates in the current quarter, and its stock has fallen 50% since February. Mr. Stead's unusual management style was formed in his 21 years at Honeywell Inc. before joining AT&T Corp. In 1993, he took over AT&T's troubled computer unit, the former NCR Corp.. The unit never was very successful for AT&T and Mr. Stead resigned after 16 months in the position. He joined Ingram Micro in 1996 as the company was already the world's largest distributor of computers, with revenue of around $12 billion at that time. Although Ingram Micro's net income rose to $245.2 million last year, and its 1998 revenues reached $22 million, up 83% since Mr. Stead's arrival, its margins have been squeezed heavily this year.

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Seagram Co. reported a $226 million net loss for the second-quarter of 1999. However, the performance of the company's music and liquor units countered the disappointing results from Seagram's movie group. During the same period in 1998, the company posted $28 million in earnings. The quarterly loss amounted to 63 cents per share. Seagram said that it is dealing with management troubles in its movie division.

Ogilvy & Mather will correct a situation for IBM with a $75 million ad campaign that informs the world of IBM's technology services. The services and consulting segment of its business is doing better in sales than its hardware unit, and the company doesn't want to jeopardize that. Print ads will run in groups of three, showing one-on-one service help, and also team-oriented help. The 'people' approach is less intimidating to clients who probably don't need to know how large the group is. Services employs 126,000 people. The purpose of it all is to help the company's image and perhaps even help it recruit new qualified employees.

AT&T announced the acquisition of IBM's global network for $5 billion in cash. The agreement, which contains several side agreements, will allow AT&T to compete with MCI Worldcom as an international Internet-based network player. Many analysts had expected AT&T to pay $3 billion to $4 billion, but said AT&T will reap significant benefits from the global network. Revenue from the IBM network is expected to produce $2.5 billion during AT&T's first year of operations. AT&T has spent heavily since 1997 on acquisitions to catch up in the global data communications race and depart from its long-distance tradition. Conditions of the alliance include a dual agreement to avoid competition as well as purchase $9 billion of services from one another into the next decade. The deal also calls for transferring around 5,000 IBM network employees to AT&T, plus the possible shift of more than 2,000 AT&T employees to IBM.

IBM exceeded analysts' expectations by reporting a 10% gain for the 3rd qtr 1998. The computer giant listed a profit of $1.49 billion, or $1.56 a diluted share, compared to the 3rd qtr 1997's $1.36 billion, or $1.35 a diluted share. A First Call survey of analysts had predicted per-share earnings of $1.53, but IB failed to match the 'whsiper' figure of $1.60. An unexpected 8% sales growth, coupled with continued strength by its computer services subsidiary, contributed to the results. Quarterly revenue also jumped from $18.61 billion in the 3rd qtr 1997 to $20.1 billion in the 3rd qtr 1998. IBM credited its higher earnings to fewer outstanding shares as well as a company tax-rate decline from 31.5% in 1997 to 30% in 1998. CFO Douglas Maine cautioned investors that weaknesses overseas and in the semiconductor business will conflict in the short term with IBM's overall competitiveness.

Vanstar Corp. will be acquired by Inacom Corp. in a $480 million stock swap that will be structured as a tax-free merger known as a 'pooling of interests.' Industry analysts have said that the deal, which still must be approved by regulators and shareholders, will create the world's largest distributor of Compaq, IBM and Hewlett-Packard computers for corporate customers. The merger of Inacom, known for its product-management operations, and Vanstar, which provides computer consulting and services, will create a company with about 13,000 employees.

Unisys doesn't want a ho-hum mission, image or ad campaign. CEO Lawrence Weinbach charged Bozell Worldwide to do something about it. They came up with the campaign that puts computer monitors on the shoulders of people instead of heads with faces. It's a global campaign that will launch in 25 markets with the message that Unisys employees 'eat, sleep and drink' their job responsibilities. Other steps by Weinbach have been cutting debt by about $1 billion and getting out of the PC business.

International Business Machines Corp. announced two new appointments to the executive committee, Abby Kohnstamm and James Vanderslice. Abby Kohnstamm will become the new senior vice president of corporate marketing and in so doing will become the first female member on a board of twelve executives. Ms. Kohnstamm is credited with recasting IBM's image through an advertising campaign aimed at a more hip internet audience. Ms. Kohnstamm will become the highest ranking female at IBM.

Competitive local exchange carriers (CLEC) have failed to make significant inroads into local telecommunications markets, so far controlling only about 1% of about 180 million local lines in the US. Even so, some pioneering customers are making the change, signing up with CLECs such as Nextlink Communications Inc, Bellvue, WA; McLeod-USA Inc, Cedar rapids, IA; ICG Communications Inc, Englewood, CO; Intermedia Communications Inc, New York; and USN Communications Inc, Chicago. Comments from four satisfied customers are provided. The customers are Spokane County, Spokane, WA; Methodist Health Systems, Memphis, TN; E Center, West Valley City, UT; and John Byrne Co, Chicago.

A new marketing and technology alliance between International Business Machine Corp.'s Lotus software unit and Xerox Corp. has been formed to permit an easy integration of electronic and paper documents between copiers and computers. Industry analysts, which have said that the companies are looking for an advantage in the growing field of knowledge management, also note that IBM and Xerox will bring their products into compliance with new standards proposed by the non-profit Salutation Consortium.

International Business Machines Corp. will present its new matchbook-size hard-disk drive intended primarily for digital cameras and hand-held computers at a photography trade show in Cologne, Germany, in third week of Sept. 1998. The product, called microdrive and considered to be the world's smallest hard-disk drive, weighs 20 grams and holds about 340 megabytes of data. The drive has the capacity for more than 300 high-resolution photos compared with just about 12 for the typical flash-memory cards. The device, which fits a camera's Compact Flash slot, can also work with a standard personal-computer card adapter. The microdrive is expected to be available in the market in mid-1999.

Cable and Wireless Communications PLC has confirmed payment of $3 billion that is called for in a 10-year computer-service outsourcing alliance with International Business Machines Corp. IBM's Global Services unit will take in 1,000 employees from CWC, while IBM will add another 400 workers to the project. IBM will supply the customer-care and billing systems, provisioning/order-processing services, plus e-mail and computer desk-top support, to the cable television and telephone firm. CWC will retain its responsibilities in overseeing telecommunications network software, as well as for computer strategy and security.

International Business Machines Corp. (IBM) is offering to sell its Global Network operations. The sale of Global Network could raise as much as $3 billion to $4 billion. Merrill Lynch & Co. has been commissioned to auction the network. Global Network emanated from a telephone system that connected the firm's scattered outposts. Global Network transmits corporate data for approximately 30,000 customer facilities in 900 cities around the world.

IBM has put its prestigious Global Network operations up for sale, according to insiders. Merrill Lynch has been hired to auction the network, which insiders said could command $3 billion to $4 billion. IBM's Global Network, part of its blue-chip services base, prevails in many network contests for reliability and customer service. It is deployed mostly by corporations for services that include connecting distant computers, receiving electronic orders and linking employees to the Internet and E-mail. Assets include 6,000 international employees, switches, modems, routers and 1,375 phone connections. IBM executives decided to sell the network because they want to shed its typical $200 million annual upgrading costs and boost flexibility in the shifting telecommunications industry. AT&T, British Telecom, Equant and several regional Bell operating companies are believed to be among the likely suitors.

The Olympic Games world-wide sponsorship, International Business Machines Corp., has decided to withdraw from its 38-year marketing relationship with the International Olympic Committee because of a dispute over technology costs. IBM, which paid $100 million to sponsor the Games last year and wanted the IOC to pay for some of the technology costs, also was irritated by an IOC decision to create a separate sponsorship for the Olympic Games' Web sites. Industry analysts predict that the IOC will not be able to find a comparable replacement for IBM.

International Business Machines Corp. (IBM) has perfected a faster manufacturing process for computer chips. The process is up to 35% faster and utilizes less power. The process could potentially increase the battery life of laptops, cellular phones, and other products. The manufacturing process could make chips that will operate 1,000 megahertz faster than Intel Corp's Pentium chip.

IBM today is expected to say that its S/390 G5 mainframe generation, due for Aug 1998 shipment, will offer 15% more power than originally unveiled in May 1998. The computer vendor is expected to announce that the top-end S/390 G5 has a capacity of 1,040 millions of instructions per second (MIPS), which would surpass analysts's expectations of around 900 MIPS. The surprising development would put pressure on mainframe rivals Hitachi Data Systems and Amdahl, whose counterparts offer around 975 MIPS and 685 MIPS respectively, according to analysts's estimates. All three companies are planning upgrades for 1999, including an Amdahl 990 MIPS mainframe, due in Jan 1999, and an IBM G6 version. The IBM numbers apparently are valid, according to Gartner Group.