IT market shakes up two firms

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

hardware distribution.

"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."