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DEC CEO ROBERT PALMER OUTLINES STRATEGY IN EXCLUSIVE INTERVIEW WITH INFORMATIONWEEK

 MANHASSET, N.Y., Feb. 19 /PRNewswire/ -- While Digital Equipment Corp. analysts contend that the troubled Maynard, Mass., company should set a client-server strategy around its Alpha chip and expertise in networking, Robert Palmer, the company's new CEO, isn't so sure.
 In an exclusive interview that will appear in the Feb. 22 issue of InformationWeek, Palmer, just four months into the job, details the dramatic moves he has made in his short tenure. He recast the business along new lines and introduced a strong dose of accountability: Nine independent business units organized by product line or industry sector now have profit and loss responsibility - a first for the $14 billion company.
 Palmer, just the second president and CEO in the history of Digital Equipment, has won praise from Wall Street for quickly hacking away at the bloated computer giant and his no-excuses management style.
 Yet, beyond initiating those sweeping moves, and admitting there are "opportunities" in client-server, Palmer has yet to articulate a more detailed strategy, leaving DEC to suffer from what many call an "identity crisis."
 Turning around DEC will be no small feat. Once the runaway leader in the minicomputer market, the world's third-largest computer maker is now deep in the red, having missed huge opportunities in PCs workstations, and sending customers mixed messages about its commitment to Unix and open systems.
 The pressure is on Palmer to provide answers to some strategic questions. Can DEC afford to back three distinct operating systems, its current game plan? Can customers count on continued support for VMS, the computer maker's proprietary system? How will DEC differentiate its products based on Unix and Microsoft Corp.'s much-anticipated Windows NT?
 Despite this rash of concerns, Palmer remains optimistic. He promises to lay out his full-fledged strategy-at some as-yet- undetermined point. "It's been four months since I have been in this job," he says. "I think it's a little unreasonable to expect that I have the full answer to all the intergalactic questions in software and computing."
 InformationWeek, published by CMP Publications Inc. of Manhasset, N.Y., is the leading weekly news-magazine targeted directly at those executives who oversee the computer and communications systems in the largest corporations. It has a circulation of more than 200,000.
 -0- 2/19/93
 /CONTACT: Ira Sager, editor-at-large, 516-562-5056, or Elliot Kass, deputy managing editor, 516-562-5698, both of InformationWeek/


CO: Digital Equipment Corp. ST: Massachusetts IN: CPR SU:

LR-OS -- NY049 -- 8461 02/19/93 14:41 EST
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Date:Feb 19, 1993
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