Changing technology drives Alaska's computer industry.

• Author: Richardson, Jeffrey

Changing Technology Drives Alaska's Computer Industry

TWO MEN MUNCH PIZZA AT Anchorage's Dimond Mall, talking shop. Computer shop. One, recently arrived in Alaska, represents a line of minicomputers and software and sells his troubleshooting services. The other, a veteran of the state's computer industry, has been involved in sales, programming and repair and maintenance in the 49th state for more than a decade.

"The computer industry is changing up here," says the veteran. "Customization is where you make the money."

They discuss the growing power of microcomputers, which is pinching the minicomputer market, and the impact of technological advances on sales strategies. The veteran advises that in the small Alaskan market, competitors can sometimes be partners, that profitable strategic alliances among consultants can be established by those who know each other's strengths and weaknesses and have a good eye for new possibilities in computer applications.

New sales prospects, while not abundant in Alaska's current economy, can be uncovered by getting to know the state's business community. "Look for growing companies, those adding new subdivisions or subsidiaries," advises the veteran.

And be persistent, he says. Though businesses are increasingly computer automated, some good old-fashioned selling is sometimes needed to help potential customers understand the practical value of adding new technology to their operations.

Others familiar with computers in Alaska agree that rapid change in microchip technology and national and international consumer developments are affecting long-term trends in hardware/software sales and consulting here. Although recent shakeout in Alaska's computer sector has paralleled the general downturn, it is attributable less to declining oil prices than to increasingly competitive struggles by computer companies. Their challenges have focused on keeping pace with new technology and meeting the needs of today's more literate hardware/software buyers and their appetites for more powerful microcomputers.

The computer (or data processing, as it used to be called) industry in Alaska is made up of several segments, often overlapping and influencing one another. The industry is shaped by Alaska's geographical location and unique circumstances and by national and international computer change.

Among the suppliers are outlets dealing primarily in ready-to-use hardware and prepackaged software systems. These range from Anchorage's Costco and Pricesavers wholesale stores that sell inexpensive IBM clones to retail stores such as Computer Land, which carries several prominent name brands and provides the level of customer support mandated by manufacturers. Other equipment suppliers include manufacturers' representatives for companies such as Wang, IBM and Digital Equipment Corp.

Another kind of industry player is companies selling prepackaged software and custom-designed software and computer systems. These firms market to large and small businesses looking for comprehensive computer solutions for functions such as accounting, inventory control and payroll, as well as more specialized applications in vertical markets that include food services, aviation and tourism.

These value-added Alaskan companies include MicroAge, which is completing a major shift from a retail hardware emphasis to marketing computer solutions for business; TCBC/ Compueaze; and ComRim Systems, which specializes in custom computer programming for large corporations and institutions.

Also competing to supply computer components and services are numerous small one-line retailers, specialty shops, wholesalers, used equipment dealers and free-lance consultants.

Another smaller sector in Alaska's computer market is companies selling computer software solutions...