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OUR EMPLOYEES-WE NEEDED TO CHANGE FROM A CENTRALIZED ENGINEERS, TO A CUSTOMER-ORIENTED, END-USER MENTALITY." suring that its mainframes could communicate so much momentum in that area...."Ousley ad- myriad of businesses that William Norris had with mainframes from other manufacturers— mits."Politics aside,Clinton and Gore really tried to foster under the Control Data umbrel- led Minneapolis-based Honeywell to contract took the idea of an information superhighway la."In reality.I've been with LO companies with CDS to provide a global electronic mail to heart.and the marketplace is responding." within Control Data,"says Ousley. and messaging system."If you had polled the "1 think that it will end up being one good Today,it's rare that a 26-year employee of a team [planning the electronic-messaging sys- market for CDS to be in—but to maintain high-tech company would find himself in the tem) when we put out requests for proposals, their current revenues,they can't focus just on position of a Jim Ouster trying to turn around Control Data Systems would not have been that,"says Jeff Canin,an analyst with Salomon the company where he's spent his entire pro- one of the companies that they felt could do Brothers in San Francisco."If they can extend fessional life.In other situations,firms like the job."says Bill McGarry,Honeywell's man- that to other sectors, they can do quite well. IBM,DEC and Compaq found it necessary to ager of central information services.-Now that [Electronic messaging)as a model to follow is a bring in new personnel after the veteran em- work on the system is underway,we've been good one." ployees could not get the job done. very impressed with Control Data:They're CDS doesn't have the field to itself,however: Ousley readily acknowledges that his position been very responsive,and the product has competition from such companies as the inexpe- is unusual,yet he's clearly not worried about it. . worked as advertised." rienced but eager Baby Bells will appear with Ousley doesn't envision spending the rest of his The product is connectivity for 36.000 Hon- increasing frequency in the future.Within the life at CDS."I'm committed to three to five eywell workers scattered around the globe in larger system-integration field.CDS's competi- more years here—past that.I would say I'm not more than 90 countries. In addition.Control tion includes Electronic Data Systems.Arthur central to the formula."he says."I don't see Data Systems'designers have built in full con- Andersen.IBM,Hewlett-Packard and DEC. myself being around here when I'm 65." nectivity to the Internet.The task includes ty- 'The good news is that there's no single large If there is a Control Data Systems when he's ing together 22 different messaging systems competitor or two."Canin says."The bad news 65. With so much cash and an undervalued from various vendors,running on many differ- is that there's a ton of smaller competitors.I stock price.it's surprising that CDS isn't the eat hardware and software platforms. don't see CDS rising to the top of the heap,but target of some corporate raider,a fact of which Another part of the system is the communi- they can get a good amount of business." Ousley is all too aware:"i don't lose any sleep cations protocol X500 technology:rather than over someone coming in and selling the assets. being a specific computer program,X500 is but that's obviously an issue."Adds Morrison: similar to a standard like ISO 9000.Creating a hether the 48-year-old Jim Ous- "I certainly wouldn't rule out[a takeover). common directory of employees with X500 ley is the man to oversee yet anoth- This is a half-a-billion-dollar company with S60 technology is a monumental task when string- er restructuring(a favored strategy million to 70 million in assets and potentially ing together so many disparate common sys- to placate stockholders at the old Con- some hidden assets." terns.and in this embryonic field CDS has ex- trot Data Corporation.by the way)is a matter Morrison rates CDS as a"buy"(at least for perience with projects at University of Oregon. of some debate in the investment community. 1995).as does Salomon's Canin."There's not a Unilever and the University of Minnesota. Experience,usually so treasured in leadership lot of downside in what I see as the worst-case "That's been one of the keys to the system— circles-actually becomes a liability as a compa- scenario." Morrison says. "I'm convinced we felt that they supported the X500 imple- ny tries to change directions. there's a growing,viable company within Con- mentations better than other firms bidding on "Control Data needs to gain more investor trol Data." the project."McGarry says.'They have deliv- confidence in management."Kinnard's Morn- In the Twin Cities,even casual observers of ered on what they said they could." son says."They have yet to prove themselves Control Data Corporation and Control Data The Honeywell contract also stands out be- as an independent entity,and there are some Systems have been exposed to every bit of bad cause.instead of paying CDS to install hard- people cautiously looking at this management news possible:layoffs.failed ventures,consis- ware. Honeywell has contracted CDS to ad- team and saying,these guys grew up with Con- tently lowered expectations.total shutdowns of minister the network on an ongoing basis. In trol Data,and do they have what it takes to subsidiaries.That reputation.however.doesn't fact. most of the system's hardware is being make it in the real world? necessarily extend outside the state."Oddly purchased by Honeywell through other chan- "That's hanging over Control Data: Is Ous- enough, their reputation among their cus- nels. McGarry says it's the best business ley and this management team the right tomers is better than among stockholders." arrangement for Honeywell."This is a chang- group?" Canin says."The Control Data name carries ing and volatile environment."McGarry says. in many ways.Ousley epitomizes the Con- good will—they have a reputation based on re- "It's so much more advantageous to buy it as a trol Data employee—but a Control Data Cur- liability and what they've done in the past." service and get a set of skills from outside the poration employee.not a Control Data Sys- "It may he hard for us Minneapolitans to company,from someone who does it for a liv- tems employee.He's been with CDC and CDS believe." Morrison says."hut when you get ing.It's more cost-effective that having us do it for 26 years.having taken a sales position with outside of this town and to Europe.you see ourselves." CDC right after earning a bachelor's degree in that Control Data is well-respected." • It disturbs some observers that CDS seems to business administration from the University of have stumbled into the electronic-messaging- Nebraska. Working his way up the corporate Kevin Reichard writes for several computer' service arena."We didn't know there would be ladder,he made the obligatory stops at the industry publications.including PC Magazine. . TWIN-CITIES BUSINESS MONTHLY FEBRUARY 1995• 49