BUSINESS NEWS

New life for NeXT Europe

by Dan Lavin

Ismaning, Germany Ð The dream of a politically unified Europe may be fading, but by all indications NeXT is starting to flourish on the continent: Sales are ahead of plan and will contribute at least 25 percent of NeXT's worldwide sales; Computer 2000, the largest software distributor in Europe, has become a distributor of NEXTSTEP; and Sorbus, a Bell Atlantic affiliate, has started service operations throughout the region.

The positive signs are remarkable because NeXT's restructuring hit the European market even harder than the United States' and was preceded by serious missteps under former Vice President Theo Wegbrans. The European market is famously conservative and slow to grant second chances, but the NeXT Europe team of 11 employees (down from a high of 90 two years ago) working through indirect channels seems to have gotten that second chance.

According to the sales plan, NeXT Europe is due to sell $2.5 million in product from Expo through the end of 1993 and $12.5 million in calender year 1994. "We're very confident of achieving our 1993 goals based on our experience selling product now and business we see coming in the next few months," said Bernhard Woebker, NeXT's vice-president for Europe.

NeXT in Europe only sells indirectly through the distributors to dealers. With the addition of Munich, Germany-based Computer 2000, there are now over 15 distributors on the continent and NeXT is now selling in more countries than at its peak two years ago. The huge distributor, often termed "the Ingram of Europe" due to its size, has only signed an agreement to be the second distributor in Germany, along with d'ART Computersysteme GmbH, but discussions for a wider agreement are actively proceeding, according to Woebker. A deal with Computer 2000 is significant both in terms of market perception and allowing customers to order NEXTSTEP through almost any PC reseller and dealer in Germany, and later Europe, Woebker added.

Sorbus is the European arm of the Bell Atlantic network that is 49 percent owned by Bell Atlantic and 51 percent owned by ICl of Great Britain. It will provide full warranty support and sell service contracts on black hardware throughout the continent.

In related news, NeXT Europe has hired Dieter Hesse as marketing director for the region. He comes from working with companies such as Microsoft and Markt & Technik, where he supported indirect software sales.