Houston
Compaq Computer Corp. last week bought its way into the remote access
market, announcing plans to pick up Microcom, Inc. for $280 million.
Along with the announcement, Compaq revealed ambitious plans to grab
customers quickly by pumping Microcom products through Compaq sales
channels and improving the price/performance ratio of those products by a
factor of two.
'With Compaq's sales channels, I'd go along with that [price savings
being attainable],' said Brad Baldwin, an analyst with International Data
Corp. in Mountain View, Calif.
Compaq is going right after market leader Ascend Communications, Inc.,
looking to gain 25% of the remote access server market within a couple of
years, according to Alan Lutz, senior vice president and general manager of
Compaq's Communication Products Group.
Compaq's road map calls for basing the companys remote access servers
on two new Microcom hardware platforms and Windows NT software.
Microcom is well known for its remote control software, Carbon Copy.
But the Access Integrator and ISPorte it started shipping in 1996 accounted
for a 212% surge in overall Microcom sales between the first and second
half of last year, Baldwin said.
The deal also gives Compaq modem technology it can incorporate into
its network servers.
Compaq would not detail products that might come from the acquisition.
While Microcom products perform well, Baldwin said they are pricey.
But Compaq claims its ability to buy parts in large volume will reduce
manufacturing costs.
In addition, the company intends to cut margins thin to maximize
sales.'We will price for accumulation of share - a classic Compaq play,'
Lutz said.
Mark Galvin, president of RAScom, Inc., which also makes NT remote
access servers, said the deal was impressive.
By owning its modem supplier, he said Compaq will cut out the
middleman and should be able to keep prices down.
Ariel, too
News of the Compaq/Microcom deal led modem-maker Ariel Corp. to reveal
its plans for a remote access product line called RASCAL that the com- pany
had planned to keep under wraps until NetWorld+Interop 97 next month.
RASCAL features Netblaster, the code name for a PC board that includes
modems and software to convert a standard file server into a remote access
server.
The board will offer Compaq rivals the option to quickly market remote
access servers, according to John Lynch, chief technical officer at Ariel.
