Micron eyes fed market

Micron Electronics Inc.'s interest in purchasing government reseller Inacom

Government Systems Inc. shows that the computer manufacturer is serious

about competing in the federal market, industry experts say.

Sources close to the negotiations confirmed the companies are discussing

a deal but would not elaborate on the specifics because of Security and

Exchange Commission regulations. An announcement is expected this week.

The acquisition will enable Micron to increase its customization and

systems integration capabilities and move closer to becoming a one-stop

shop for agencies. The additional services, such as hardware resale, will

make Micron more competitive against market giants such as Dell Computer

Corp., one industry expert said.

Micron also will obtain an established federal sales force and a location

in the Washington, D.C., area. Micron's federal sales staff is based in

Meridian, Idaho, and Chicago.

"In the past, [Micron] has been behind the eight ball because they don't

have a physical presence in the D.C. area," said Alan Bechara of Comark

Federal Systems, a government reseller. "Inacom brings ready-made contracts

and facilities in the area and takes [Micron] to the next level."

Industry sources say Micron, which is accustomed to doing business from

a manufacturer's perspective, also faces the challenge of changing its sales

and management tactics to accommodate its new role as a systems integration/government

reseller.

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