[clari.nb.govt] Australia: $50 Million Deal with IBM Still Pending

newsbytes@clarinet.com (02/04/90)

CANBERRA, AUSTRALIA, 1990 JAN 30 (NB) -- Custom Computer
Services (CCS) still has not signed a contract with IBM for
the Australian Defence Department's Desine deal despite selling the
Big Blue subsidiary more than AUS$400,000 worth of PCs over
the past two months.

CCS managing director, Allan Garnham, said his company has
saved IBM a lot of trouble by supplying the PCs because it
has helped IBM meet the Australian-made content level
demanded by the government for Desine.

The issue began late last year when CCS bought financially
distraught "Cleveland PC" maker Computer Corporation of
Australia (CCA) for $1 million. At that time, CCA had been
in the process of signing and agreement with IBM said to be
worth $50 million over five years for the supply of
Australian-made PCs to the Desine contract.

However, Garnham said CCS had sent a contract to IBM and
was waiting for its reaction. IBM's apparent inactive
approach to the contract is no doubt connected to concern
about the future of the Cleveland PC.

In response, Garnham announced CCS would have a new range
of Cleveland PCs by March. Garnham said reasons for the new
range was that the old Cleveland machines had been using a
VGA chip that Intel had now dropped and that CCA's
manufacturing methods had been "labor intensive." The new
line would incorporate VLSI, or surface mount technology.

Cleveland's XT will be dropped for a 286XT that has a
1024 x 768, 256-color VGA board and all I/O on one board.
Above the 286, CCS will introduce a 386SX with the same
features and has a 486 machine on the drawing boards.

"We hope to have all the new machines on the market by late
March," Garnham said. The Queensland-based company now has
two lines of computers -- CCS PCs which the company
assembles from imported components, and the Cleveland line
which is manufactured in Brisbane. "We anticipate we will
have one range of machines by the end of this year, and
have ceased all import activities" he said.

(Martin Guldberg, Computing Australia/19900131)