Software Spectrum absorbs Egghead fed biz, aims for larger market

Two months after acquiring Egghead Inc.'s government business Software Spectrum is taking steps to position itself for a major role in the federal reseller market according to company officials and industry vendors. Software Spectrum announced in late March that it would take over Egghead's corpora

Two months after acquiring Egghead Inc.'s government business Software Spectrum is taking steps to position itself for a major role in the federal reseller market according to company officials and industry vendors.

Software Spectrum announced in late March that it would take over Egghead's corporate government and education (CGE) business. The deal finalized in late May is worth $45 million.

Since then Software Spectrum has dedicated Egghead's old call center to handling CGE customers expanded its own General Services Administration schedule to include many products formerly offered by Egghead and opened a federal office in the Washington D.C. area with a dedicated staff of a manager and two sales people.

"Software Spectrum had a presence on the GSA schedule but not a significant presence " said Lorraine Castorina director of North American sales for Software Spectrum. "Egghead had a fairly robust federal business established."

The acquisition of Egghead's CGE unit approximately doubles the size of Software Spectrum. The company reported net sales of $384 million in calendar 1995. With the addition of Egghead's CGE business total sales would be $767 million.

CGE Adds Size Visibility

Software Spectrum has increased the number of vendors whose products it offers on the GSA schedule by half to 40. But the reseller cannot estimate how much its sales have changed since the takeover Castorina said.

The acquisition gave Software Spectrum the size visibility and resources to grab a major share of the federal market while relieving Egghead of a stumbling portion of its business according to Jan Morgan an analyst for International Data Corp.

"Egghead was having tremendous problems " Morgan said. The company's sales on the GSA schedule slipped badly last year she said.

The transfer of the CGE business lets Egghead concentrate on retail consumer sales while helping Software Spectrum intensify its government effort according to Software Spectrum.

"We have made a serious commitment to the federal business " Castorina said. "We are very excited about the opportunity to serve this market." Software Spectrum inherited contracts with the departments of Defense Interior and Justice as well as a GSA schedule business she said.

So far the company has handled the transition well enough that vendors have seen no drop in sales. "I don't see them losing any ground " said Rick Carlson director of major market operations at Novell Inc.

Novell is looking for Software Spectrum to be one of its main conduits for supplying federal customers on the GSA schedule Carlson said. The company also uses Software Spectrum to fill orders that Novell receives directly for upgrades and maintenance he said. The reseller can provide customers with products and provide customer support functions that Novell does not he added.

"I viewed the combination of the companies as a bonus for Microsoft " said Monique Henderson the GSA program manager for Microsoft. Egghead had a strong federal sales force while Software Spectrum is strong in technical expertise she said.

"[Software Spectrum's technical expertise] is a great thing for the sales people to have behind them " Henderson said.

Value-added business is an increasingly important component of the federal business for Software Spectrum Castorina said. "There is an opportunity for us to go back and talk to customers about maintenance and technical support " she said.

The company can provide consulting services training and technical support as well as off-the-shelf software.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.