May1993 INPUT Vol.IV,No.7 IEU-CSP Routeto: Research — Bulletin APublicationfromINPUT'SCustomerServicesProgramme—Europe Olivetti Moves into the Open Support Services Market Olivettihasalreadymadeanameforitselfin • Irrespectiveoftheindustrysectorsinwhich theareaofMultivendorMaintenance. Ithas theyoperate rneomwedmioalvehdarbdewyaornedsetrhveiscteagweaswhbeeriengaopfufreerledy, • Whateverphaseofthesystemlife-cyclethey andiscomingtomarketwithacomprehensive setofserviceswhichenableittoclaimtooffer Thebreakdownbycountryofthe1992rev- aportfoliowhichcaterstoalltypesofusers: enuesderivedfromOlivetti'stotalcustomer servicesoperations,includingservicesprovided • Whateversize onbothproprietaryandopensystems platforms,arecontainedinExhibit1. Exhibit1 CustomerServicesRevenues—Olivetti Western I Country Revenues PercentofTotal ($Millions) CustomerServices Revenues France 130 12 Germany 95 9 U.K. 150 14 I Italy 440 42 NordicCountries 75 7 Benelux 70 7 Spain 65 6 RestofEurope 35 3 TotalCustomer 1,060 100 ServicesRevenue \ — Source: INPUT ©1993byINPUT.Reproductionprohibited. RESEARCHBULLETIN Olivettiisstillthemarketleaderwithinthe sessedtheskillsrequiredtoexpandOlivetti's multivendormaintenancemarket,butitsposi- capability. tionisbeingincreasinglyattackedbyDigital Equipment. Itachieveditscurrentpositionby Exhibit2liststheoriginalconstituentcompa- adoptingastrategyofacquisitiontargetedat nieswithintheOlivettiindependentmainte- commerciallyviablecompanieswhichpos- nanceoperationwithabriefdescriptionoftheir principalareasofactivity. Exhibit2 OlivettiAcquisitionsOperating intheEuropeanOpenSupport/MultivendorMaintenanceMarket Company Mission Location DecisionSystems Toprovidemaintenanceandsystems Belgium supportintheIBMandDECminimarkets France Spain Toselluseful,life-enhancingadd-ons, U.K. peripheralsandsecond-usersystems Germany intheIBMandDECmarkets Holland Italy Toprovidesingle-sourcemaintenance Australia forselectedcustomerswithmultivendor environments Testpoint Third-partymaintenance Canada ; C.T.S.Comtech Third-partymaintenancewithparticular Belgium Service skillsinnetworkandcommunications DanskData Networkinstallationandmaintenance Denmark Installation specialist OakleyComputer Third-partymaintenanceinaWang U.K. environment O.A.S. Third-partymaintenanceintheAES, U.K. WordplexandWangenvironments DatronicPeripheral Third-partymaintenanceintheDEC Switzerland Systems environment Toselluseful,life-enhancingadd-ons, peripheralsandsecond-usersystems Ing.F.lachiello& Networkinstallationandmaintenance Italy Co.Spa specialist Source: INPUT RESEARCHBULLETIN Althoughinitiallythecompaniesbroughtinto • Traditionalremedialcontractservices thegroupweremanagedatarmslength,inthe majorcountrymarketswhereOlivettitrades • Professionalandinstallationservices significantlyINPUTexpectstoseeanongoing ingPCsupplyandupgradesandtheir policyofrationalisationtobeundertaken,in integrationintoofficenetworks. ordertomouldtheoperationintoacoherent marketingunit. Forinstance,inFrance, IntheFrenchmodeltheonlyareasnotunder- Olivettiisnowmarketingitscustomerservices takenbyOliservicearethoseofplanningand operationalongsidePChardwareandadd-on designforPCnetworksandUNIXbasedclient/ asatotaldesktopservicescapability, serversystems,andevenhereinsomeinstances theactivityisjointwiththeOlivettiTechnical Servicesdivision,whichspecialisesinsystems Theextensiveacquisitionprogrammeunder- integrationattheplatformlevel. takentodevelopthemultivendormaintenance servicebusinesshasatthedesktoplevelmade Exhibit4explainsthecapabilitiesoftheOpen theuseofservicepartnershipslargelyunneces- Servicesdivisionintermsofamatrixofhard- sary. Indeedthedevelopmentofthecompany's warecomponentsandtheequivalentservices skillsbasehasbeendesignedtoprovidemost oftheprofessionalservicescapability thetraditionalservicecontractbu • Planninganddesign elements. • Installation • Operationandmaintenance. Exhibit3illustratestheelementsofthetotal managedservicewhichtheFrenchOlivetti Exhibits5and6showtherangeofhardware companyismarketing. Theservicescover: platformsandofsoftwareenvironmentsrespec- OLIVETTI ACOMPLETEOFFERING SERVICE ] 1 MULTI-VENDOR WORKSHOP ADD-ONS REPAIR f| NETWORK CONTRACT INTEGRATION SYSTEMSENGINEERS TOTALMANAGEDSERVICE- FULLRANGEOFCUSTOMERS g I J SITECABLING USERTRAINING COMMISSIONING ON-SITE P HOT-LINE INSTALLATION Source: INPUT e1993byINPUT.Reproductionprohibited. OLIVETTI SERVICEPORTFOLIO SERVICE Advanced Products PorPtCasb/les co(mUMpiNunIitX-e)rs SCleirevnetr/ LANs SCyasbtlienmgs WirBeAlacedtsigsveesLAN Video- conferencing RequirementsAnalysis Planningand ProjectManagement Design HardwareArchitectureDesign SoftwareArchitectureDesign Configuration SitePreparation Installation Commissioning Implementation FacilitiesManagement Operations SoftwareSupport EquipmentMaintenance ^/O7l7i7v7e7t7t7i77E7qV7u7i7p7m7e7n7t7?, WorkshopRepair&SpareParts / (IBM,DEC,HP) OlivettiTechnicalServices OliserviceDivision 1 OLIVETTI MULTI-VENDORMAINTENANCE SERVICE MakesSupported > PC/PORTABLES MINICOMPUTERS <: -A.D.D.X to OLIVETTI-AT&T- IBM(AS/400,S/36,S/38,43XX) - DEC- -AMSTRAD DEC OLIVETTI MEMOREX,MACDATA(C -APPLE GROUPIL SIEMENS -AST. TANDON - BULL IBM ZENITH PRINTERS - AMSTRAD - MANNESMANN - APPLE - FACIT - NEC - BULL - FUJITSU -OLIVE11 > EFT/EPOS - CANON - GENICOM -OKI - CENTRONICS - H.P. -SEIKOSHA -EFT: INGENICO,CROUZET,ESD,SCHLUMBERGER -CITIZEN - IBM -SIEMENS -POS: STRATOR,PRODATA,EGT,OLIVETTI-LOGABAX - KYOCERA - LOGABAX -STAR ATM: BULL,OLIVETTI,TRANSAC i "0 m —J OSLEIRVVEITCTEI SPOrFoTduWcAtRsESuSpUpPorPtOeRdT ScXir CT> OperatingSystems Network WANProtocols SCOUNIX-ODT-XENIX Software X25 UNIXV4.0 MSLANMANAGER SNA UNIXAT&T OLINETLANMANAGER DSA MSOS2 LANMANAGERXSVR4 MSDOS NOVELL DC/OSX TCP/IP LAN/WAN products X/OS NFS SYNOPTICS 05 OSX LANSERVERIBM CISCO VOS FTX Solutions 1 IBISYS PCSoftware ODIS Database Management Products PB ORACLE MICROSOFT NCC INFORMIX SCO RETAIL CoO SQLSERVER PAGEMAKER ATN's o— CD Tl