IT market shakes up two firms
- By Natasha Haubold
- May 22, 2000
The volatile information technology marketplace has caused two Fortune 500
companies with a history in the federal market to announce changes in their
business practices last week.
Inacom Corp. announced May 18 that the company had been experiencing
a cash flow shortage and was looking at alternative financing sources, including
selling the company. In April, Inacom sold its Government Systems Division
to Micron Electronics Inc. for an undisclosed amount. Two months prior to
the Micron purchase, Inacom sold its PC distribution services to Compaq
Computer Corp. for $370 million.
Intergraph Corp. also announced May 18 that it has shifted the company's
core objectives to focus on systems integration and services rather than
"This is a pretty significant change for us," said James Taylor, Intergraph's
chief executive officer. "We are not trying to define a new company. We
are taking the best assets of the company and maximizing them."
Intergraph will continue to offer public safety, mapping and geographic
information system services, but will add World Wide Web hosting, networking
and e-commerce to its list of available services.
"We will provide everything [an agency] needs," Taylor said. "We will
provide all end-to-end services."