From: peters@convex.COM (James Peters)
Newsgroups: comp.sys.prime
Subject: Re: PrimeService
Date: 28 Jul 92 16:57:51 GMT
Article-I.D.: convex.1992Jul28.165751.28294
Reply-To: peters@convex.COM (James Peters)
Organization: CONVEX Computer Corporation, Richardson, Tx., USA
Originator: peters@mikey.convex.com
X-Disclaimer: This message was written by a user at CONVEX Computer
              Corp. The opinions expressed are those of the user and
              not necessarily those of CONVEX.

In article <9207281349.AA04843@usenet.rpi.edu> Info-Prime@Blx-A.Prime.COM writes:
>John_Donat, and everyone else:
>Please calm down.  This is really getting out of hand.  I plan to stay with
>Prime Service for both hardware and software support, and I hope to stay
>with them for as long as I have Primes -- which will most likely be for
>years to come.
>We have experienced a rapid decline in the number of Prime Service Field
>Engineers out here.  Shield's plans for Prime Service giving his track record
>of raping CSBU and hastening the demise of the 50 series since he was hired
>is a cause for concern.  I want Prime to insure that source code would be
>available - through escrow, a trust, somehow -- IF 50 SERIES & PRIMOS
>SUPPORT WOULD DROP BELOW A CERTAIN LEVEL - The level to be determined.
>Prime Service revenue from Primos and 50 series will be dropping.  Every
>site that leaves Prime for another vendor is going to affect the maintenance
>dollars seen by Prime Service.  At some point the revenue will drop to the
>point that the level of support provided cannot be justified by revenue. This
>will cause a shifting of people to 'other' priorities and/or loss of technical
>talent through attrition, lay-offs, etc., etc.
>I (and I think 'we' as a defacto User-Group on this list) need some guarantees
>from PrimeService. Source code should be one factor in this guarantee.
>20 engineers (for instance) supporting Primos vs. 1 engineer can both be called
>continuing service. The Mean-Time-To-Fix-Your-Bug is going to be different,
>though.  To be fair to PrimeService and fair to the people paying the money,
>something is going to have to be put in writing and this needs serious
>consideration.
>Mike O'Rear, USC. Out on a limb of my own doing.

i think a case study of MAI Basic Four would be in order at this time.

MAI Basic Four under the leadership of Bennett LeBow has managed to live
off its existing customer base for approxiamately 15 years. the strategy
utilized by Mr LeBow is assisted by the fact that his customer base is
tied to proprietary hardware and software. MAI Basic Four field service
and regional support offices were consolidated, read eliminated, with 
all hardware service eventually sold to Bell Atlantic Sorbus. software
support was continued by MAI Basic Four with only a commitment to a single
update per year. the majority of the former regional offices became con-
sultants living off their proprietary customer base. Mr LeBow's hostile
takeover attempt of prime was nothing more than a extension of his leader-
ship of MAI Basic Four. if the takeover had succeeded simply implementing 
a slash and burn plan would have been relatively simple. he probably was
hoping that prime would have taken over MAI Basic Four utilizing the
"best defense is a strong offense" strategy, but prime management was more
concerned with milking their cash cow then with surviving as a computer com-
pany.

my bet is that prime will be around for quite some time, at least until
the customers have amortized the hw and ported their applications to other
platforms. eventually all field service will be sold to a third party vendor.
primos will be maintained but not extended. 

regards,
james, peters@convex.com
Newsgroups: comp.sys.prime