Boeing Computer Services to Shift to Integrated Systems

By Tyson, David O. | American Banker, January 25, 1984 | Go to article overview

Boeing Computer Services to Shift to Integrated Systems


Tyson, David O., American Banker


NEW YORK -- Spurred by the growing use of microcomputers, Boeing Computer Services Co. plans to move away from remote time-sharing and toward integrated information systems.

The subsidiary of Boeing Co. was formed in 1970 to market computer services that its parent developed in aircraft manufacture. Time-sharing customers connect into its data centers through Boeing's 183 local access numbers, which form one of the largest privately owned telecommunications networks in the world.

The parent is the biggest customer, accounting for about $550 million, or nearly 70%, of Boeing Computer Services' $800 million annual revenues. Corporations and the federal, state, and local governments make up the rest of the clientele for its products: business management, engineering, data processing, and communications services.

At present, banking and finance is a small segment of the Boeing computer business. The company provides on-line transaction processing to 15 thrift institutions, mostly in the East, but to no banks at the moment.

Boeing Computer Services executives see that changing.

"The banks' demand for computing services to compete with Sears and the others is just astronomical," says Alvin M. Savio, newly appointed vice president and general manager of commercial services.

"Citicorp has started to sell them. I think Bank of America is. I'm waiting for the announcement any day that Sears is going to start selling computer services." Some Big Contracts

Mr. Savio was in New York last week for a news conference at which Boeing Computer Services executives announced the redirection of the company's efforts.

"Our customers don't want time-sharing alone," Robert L. Dryden, president, told reporters.

"The microcomputer has contributed dramatically to that situation. So have recent advances in software and data transmission technology. And so have changes in the typical user's requirements. BCS views these changes as opportunities."

Among the other announcements Boeing Computer Services made at the news conference:

* It has established a software and education products group to produce and market proprietary software and education and training services. …

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