Ciena, Cisco Team on Networks

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Sun Delivers Postal Contract

Sun Microsystems Federal Inc., McLean, Va., beat out three competitors this week to win its biggest federal contract since 1996.

Sun pushed aside IBM Corp. of Armonk, N.Y.; Digital Equipment Corp. of Maynard, Mass.; and Hewlett-Packard Co. of Palo Alto, Calif., to nab a five-year U.S. Postal Service contract worth up to $500 million.

Sun will provide the Postal Service with hardware, software and a full range of computer services as the agency updates and expands its systems. The Postal Service is gearing up for a move into the information delivery business.

A Win-Win Situation

There were no losers when the Defense Department awarded its $2.5 billion contract for the Defense Medical Information System/Systems Integration, Design, Development Operations and Maintenance Services II. Seven companies won that mouthful of a contract last week.

Work under the five-year contract may not reach the spending ceiling but awarding a contract that large to all the bidders avoids two potential problems, said Robert Dornan, senior vice president of Federal Sources Inc. of McLean, Va.

For one, the Defense Department doesn't have to worry about protests filed by losing bidders. And DoD's Health Affairs agency won't have to go through another procurement because it has a contract large enough to handle most of its needs.

The winners? American Management Systems Inc., Fairfax, Va.; BDM International Inc., McLean, Va. (now TRW Inc.); Computer Sciences Corp., El Segundo, Calif.; Electronic Data Systems Corp., Plano, Texas; IBM Corp., Armonk, N.Y.; PRC Inc., McLean, Va.; and Science Applications International Inc., San Diego.

Stottlemyer Lands on His Feet

One month after TRW Inc. announced the management tier of its new Systems & Information Technology Group (which includes BDM International), one executive absent from that list has landed at BTG Inc., Fairfax, Va.

Todd Stottlemyer, formerly corporate vice president for BDM, will become BTG's senior vice president and director of corporate development.

Stottlemyer will form teaming partnerships with other information technology companies and hunt for quality acquisitions, according to Edward Bersoff, BTG's chief executive. Also under his purview will be the legal, purchasing and contracts departments, investor and media relations and government affairs.

Alliance Targets Fed Market

Unisys Corp. of Blue Bell, Pa., formed a strategic alliance this week with Softway Systems Inc., a San Francisco-based developer of middleware products.

The companies will target federal agencies looking to migrate Unix applications to Windows NT platforms. The Unisys-Softway alliance also will target agencies creating combined Unix/NT networks, Unisys officials said.

Old Systems Foil IRS Collections

Reliance on old computer systems is one reason why it takes the Internal Revenue Service up to three years to notify taxpayers of back debt, according to Russell George, staff director and chief counsel of the House Subcommittee on Government Management, Information and Technology.

The subcommittee held three hearings last week to review financial management practices at the IRS, Department of Defense and Social Security Administration. Those hearings came in the wake of the first-ever governmentwide federal audit, conducted by the General Accounting Office.

As a result of the delays, which stem in part from problems with old computer systems, the IRS can only collect about 13 percent of the $214 billion owed by delinquent taxpayers.

Next Generation Net

The Next Generation Internet got a boost last week from Qwest Communications of Denver, Cisco Systems Inc. of San Jose, Calif., and Nortel of Toronto.

Qwest is making available 16,000 miles of fiber optic lines worth $500 million. And Cisco and Nortel are giving in-kind contributions of equipment to aid the network.

The Next Generation Internet is a federal research project investing in high-speed experimental networks and new applications. High-tech companies are teaming up with 122 leading universities to create the network. When complete, it will be able to transmit the entire 30-volume Encyclopedia Brittanica in about one second, White House officials said.

Tech Data Buys Euro Distributor

Tech Data Corp.'s move to acquire an 80 percent stake in Munich, Germany's Computer 2000 may shake up the industry, but it will not unseat rival Ingram Micro Inc. as the world's largest computer distributor.

The deal, which would team the world's second and third largest computer product distributors, is worth about $395 million and must be approved by regulators.

Tech Data of Clearwater, Fla., and Computer 2000 had combined sales of about $12 billion last year, while Ingram Micro of Santa Ana, Calif., had sales of $16.5 billion. Tech Data officials expect the deal to close by June 30.

Fat Web Wallets

People getting Internet-related jobs can expect to make anywhere from $39,500 to $120,100 a year, according to a survey released this week by the American Electronics Association, a technology trade group in Santa Clara, Calif.

All Web jobs paid more than the average job salary of $28,582 in 1996. The Internet industry also has created 33 new job categories with positions such as Electronic Commerce Manager, Internet Strategy Director and Web Technologist.

Ciena, Cisco Team on Networks

Ciena Corp., the Linthicum, Md., company that makes equipment to boost the capacity of fiber-optic networks, inked a deal this week with Cisco Systems Inc. of San Jose, Calif., to jointly develop solutions for the next generation of optical networks.

Ciena's stock price rose 5.3 percent on the news April 20. Ciena and Cisco also announced that they are launching an industrywide initiative to create the Optical Internetworking Forum, which will focus on accelerating the deployment of optical connections between networks.

William Daley

It's Built
and They've Come in Droves.
The radio was available commercially for 38 years before 50 million people took a listen. For the television, it was 13 years until 50 million saw it for themselves. The Internet accomplished that feat in just four years.

Information technology - and especially the Internet - has been a major driver of the U.S. economy over the past five years, according to a Commerce Department study released last week. In fact, the industry was responsible for roughly 25 percent of overall economic growth in that period.

In presenting those findings, Commerce Secretary William Daley urged Congress to support tax-free Internet zones and tough standards on copyright protection.

" We're going to be a mile deep
and an inch wide."

- Lawrence Weinbach, chairman, president and CEO of Unisys Corp., explaining how he plans to differentiate his company from the competition in the IT market.


Copyright 1998 Post-Newsweek Business Information, Inc. All rights reserved

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