Digital's proposal spends considerable effort analyzing AppLogistics' existing R/3 implementation. It makes several pertinent recommendations, including separating the SAP application server from the database. This has the dual benefit of providing an avenue for scalability and establishing a failover path. Reporting and decision support are segregated from transaction processing. Digital also reminds AppLogistics' management that infrastructure for the development/quality assurance/training machine for the R/3 project must be available. And it provides a very diplomatic hint that Windows NT may not scale and suggests a multioperating system with cross-platform capabilities.

With regard to AppLogistics' Internet and intranet Netscape server, Digital's multivendor approach to customers' needs is apparent. It doesn't try to force a switch in platforms; rather, Digital has organized a Multivendor Customer Services group to maintain similar systems to the common Sun/Netscape combination.

In addition, Digital catches a serious flaw in AppLogistics' planning: AppLogistics had planned to maintain its firewall in its headquarters' data center even after the servers were shipped to Digital, overlooking the obvious need to install a firewall service within Digital's own location.

Digital offers a mixed message on AppLogistics' NetWare server. It notes that the Compaq 1500R has been retired from Compaq's product line and recommends replacing it with a Compaq 3000R. However, Digital does admit that the legacy server has all the horsepower necessary to support AppLogistics' file and print services. Since the goal of this exercise is to save money, we would have liked to see Digital plan a graceful old age for this and similar systems.

On the other hand, aside from upgrading memory, Digital has no specifics for future upgrades to AppLogistics' Notes server. The mail server is handling the present workload. To its credit, Digital does propose a transition plan to handle the deinstall/reinstall process with a minimum impact to the user community.

Nevertheless, although Digital indicates a plan to define complete details and areas of responsibility in a due-diligence period, it fails to clearly define any product group organized around the specific technologies of either Notes or NetWare. This becomes clear in Digital's description of its approach to the SAP market. After reviewing the documentation, you would conclude that Digital is concentrating on application management, and you would hope this is not at the expense of basic network services and messaging.

The SAP application's abilities to build critical enterprise business systems is well-known. That's why AppLogistics selected it. It also appears to dovetail with Digital's strategic alliances with SAP and Oracle, as well as its internal deployment of SAP applications.

Digital as a Partner
There are several key indicators in Digital's response that point to a successful engagement.

Realistic scope The Digital proposal does not promise things it would have to guess at or things that simply don't make sense. For example, AppLogistics is apparently happy with NetWare file and print services. Digital does not try to alter that by proposing a switch in architecture.

The customer's solution Essentially, AppLogistics got what it asked for, not a solution based on what the vendor wanted to sell. To some vendors, this is a radical notion. Digital's response indicates that AppLogistics will be able to buy hardware and software of its own choosing. There are "no requirements to purchase equipment from Digital or to purchase through Digital."

Preserving the right to innovate Digital recognizes the need to work smarter. To make money at an outsourcing deal, Digital knows it will need to manage the servers efficiently. Therefore, "Digital will be free to procure at its own expense any and all hardware/software/ tools of its choice to support the provision of services to AppLogistics."

Personnel A potentially difficult part of the process is AppLogistics' desire to move six staff members out of the organization. Digital recognizes the potential for both problems and advantages. It proposes to manage a fair and ethical treatment of these skilled personnel. This includes clarifying each employee's future situation as soon as possible and providing comparable benefits, seniority vesting and quality of work life.