Applied Magnetics selects SMS to help refocus information technology and gain competitive edge; SMS to implement selective outsourcing strategy.SANTA ANA Santa Ana, city, El Salvador Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region. , Calif.--(BUSINESS WIRE)--Aug. 7, 1995--To enhance its competitive position in the market, Applied Magnetics Corp. has chosen SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM. (2) (Systems Management Server) Systems management software from Microsoft that runs on Windows NT Server. to manage the company's global information technology operations Information technology operations, or IT operations, are the superset of all processes and services that are both provisioned by an IT staff to their internal or external and used by themselves, to run themselves as a business. through selective outsourcing. Applied Magnetics, a leading manufacturer of magnetic recording heads for disk drives, will outsource specific information technology activities to SMS including legacy applications maintenance, data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a , help desk support, network management and support for its international telecommunications network. SMS will manage the company's complex multi-platform network of systems, which currently operate on an IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) 3090 mainframe, DEC/VAX systems and RS/6000 midrange systems. Selective outsourcing allows Applied Magnetics of Goleta, Calif. to shift management of day-to-day, non-strategic information technology tasks to SMS. Applied Magnetics will continue to manage strategic information technology planning and will focus its in-house staff on transitioning to new technologies. "We decided to implement a selective outsourcing strategy to accelerate our transition to client/server," said Daniel Ellis, Applied Magnetics' director of information services See Information Systems. . "With the help of SMS, we can reduce the risks involved in transitioning to new computing platforms and achieve our information systems technology goals in a cost-effective, timely manner." Under the terms of the five-year contract, SMS will provide information technology services to support Applied Magnetic's financial, inventory, payroll, production control, purchasing, order processing and manufacturing operations. "The relationship with Applied Magnetics expands SMS' expertise in providing information technology support for manufacturers with global operations," said Patrick Dolan, chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. at SMS. "Selective outsourcing is frequently being adopted by companies to assist in reengineering business processes. Applied Magnetics' decision to selectively outsource is representative of how outsourcing can institute change by helping companies reduce costs and avoid disruption of current operations." Through selective outsourcing, companies can take advantage of new technologies with greater efficiency, Dolan added. While SMS focuses on installing, managing and maintaining basic technologies and functions, organizations can concentrate resources on core competencies and more easily transition to new systems and computing environments. SMS has established selective outsourcing agreements with Datatape Inc., Mattel Inc., Nestle Inc., Rain Bird Sprinkler Manufacturing Corp., Rockwell Space Systems Division, Rohr Inc. and Varian Associates. Applied Magnetics Corp. was founded in 1957 and is a leading independent supplier of magnetic recording heads for disk drive applications for the worldwide data storage segment of the computer industry. The company is among the largest independent suppliers of inductive thin-film and ferrite fer·rite n. 1. Any of a group of nonmetallic, ceramiclike, usually ferromagnetic compounds of ferric oxide with other oxides, especially such a compound characterized by extremely high electrical resistivity and used in computer memory disk heads. Applied Magnetics customers include major disk and tape drive manufacturers and several computer systems companies. The company operates in five countries and employs approximately 5,500 people worldwide. Founded in 1981, SMS offers multi-platform systems management, data processing, systems integration, technical support and application development services. SMS provides transitional and selective outsourcing services to companies throughout the U.S., including Allergan Inc., Avco Financial Services Inc., Denny's Inc., Esprit, H.J. Heinz Co., McGaw Inc., Teledyne Systems Co., and TRW TRW The Real World (TV reality show) TRW The Right Way TRW Tactical Reconnaissance Wing TRW The Retriever Weekly (University of Maryland, Baltimore, MD) TRW Thompson Ramo Wooldridge Inc Business Credit Services. SMS company headquarters are located at 3 Hutton Center, Santa Ana, Calif. 92704. Telephone: 714/850-6600. CONTACT: CPI (1) (Characters Per Inch) The measurement of the density of characters per inch on tape or paper. A printer's CPI button switches character pitch. (2) (Counts Per I Joel C. Don, 714/858-7358 Kari Garcia, 714/470-9135 or Software Maintenance Specialists Mike Winder or Patrick A. Dolan, 714/850-6600 |
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