Micron eyes fed market
- By Natasha Haubold
- Mar 05, 2000
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