DIGITAL ENLISTS THE QE2 FOR LAVISH TRADE SHOW - The New... http://www.nytimes.com/1987/09/08/business/digital-enlists-the-qe2-for-...
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September 8, 1987
By CALVIN SIMS
The Digital Equipment Corporation, never known for flashy salesmanship, is throwing a $20
million party in Boston Harbor this week aboard the Queen Elizabeth 2 and the Star/Ship Oceanic
luxury liners.
Digital has rented both ships to accommodate many of the 50,000 executives who have been invited
to what is perhaps the largest and most extravagant trade show sponsored by a single computer
maker. Industry analysts expect Digital to introduce several major products tomorrow, during the
second day of the nine-day event.
The giant sales show, called Decworld, is a sharp departure from Digital's low-profile method of
selling computers.
''They are renting a big boat to get mass media coverage - they want executives who don't think
about technology to know who they are,'' said Susie Peterson, an analyst with the First Boston
Corporation. ''D.E.C. thinks it is I.B.M.'s equal and wants Fortune 500 buyers to agree.''
To handle the crowd, the ships will dock alongside the World Trade Center and serve as hotels.
Digital has even rebuilt the Commonwealth Pier to accommodate the ships, and about 10,000
members of its sales force will be on hand to pitch the products.
Dallas Kirk, who is coordinating the show, said that compared with the cost of having sales
representatives visit customers' facilities, a $20 million event is ''a bargain when you consider how
many new customers we will gain,'' Analysts said the company would generate about $1 billion in
revenues by making contact with customers at the event.
With its new-product introductions, Digital, under the direction of its president, Kenneth H. Olsen,
is expected to continue a strategy that has enabled its Vax minicomputer line to steal significant
market share from the industry leader, the International Business Machines Corporation. Digital,
whose profits have soared in the past year, reported earnings of $377.3 million, a gain of 58 percent,
in the latest quarter. Improvements Seen
Michael Geran, an analyst with E. F. Hutton, said: ''We will see significant improvements in
functionality and price performance without price increases - an indication that D.E.C. is continuing
its strategy of satisfying the installed based with a fast product cycle.''
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