While worldwide, Dun & Bradstreet Corp’s Software Services division saw 1992 turnover fall 4.2% to $533.5m because of declining demand for mainframe software, sales in the UK actually grew 17% to UKP32.4m. Pre-tax profits in the UK also rose 25% to UKP7.3m compared with a worldwide drop of 56.3% to $42.8m. Managing director of the UK arm, Steve Swift, said that sales of mainframe packages were still healthy here, particularly in the company’s main markets – utilities, retail and finance. He also said that the UK business, unlike operations elsewhere, had benefitted from not selling purely IBM Corp software, which nonetheless still generates 55% of revenues. Approximately 25% comes from ICL Plc VME software, and the remaining 20% from sales of Digital Equipment Corp packages through value-added resellers. In addition, although the Software Services division announced in December 1992 that it is to lose 13%, or between 300 and 400 employees, worldwide by the end of the year (CI No 2,062), the UK operation has only lost seven administration and sales staff, Swift said. Much to his personal pride, in fact, he has taken on 15 new staff in the professional services division over the past couple of months, taking the UK headcount to 60. The proposed job losses are the result of Software Services’ decision to focus on Unix and client-server software because of dwindling demand for mainframe products – it is getting rid of excess staff with skills no longer considered appropriate. But Swift claims that the UK, as elsewhere, will continue to develop and enhance mainframe software, while at the same time developing applications for its new markets. UK research and development spend in 1992 was split 50%-50% between old and new, he said, while adding that he was more than satisfied with sales levels of Unix and client-server software during their first year of launch – such applications generated approximately UKP2m of the UKP27.7m total UK turnover. While Swift is not anticipating the business to grow tremendously until about 1994 when the economy should have picked up, he does feel that Software Services has benefitted from being part of a large, multinational organisation, despite, or even because of the recession – firstly, he says that having a worldwide presence enables the group to provide integrated software for global markets. This, he claims, gives Dun & Bradstreet a major advantage over competitors, such as San Francisco-based Walker Interactive Systems Inc and Gateshead, Tyne & Wear-based Quality Software Products Ltd, which focus on their home markets. A second advantage from a customer’s point of view, he added, is that the group offers financial stability: users want a vendor they know will still be around in a few years.
