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July 1999, Vol. 10, No. 7

Crap shoot

Three suppliers gamble on new editorial front-ends at NEXPO ’99

A craps table

LAS VEGAS -- It is about an eight-minute hike from the floor of the Newspaper Association of America’s NEXPO trade show (held here June 14-17) to the nearest gambling hall (the Las Vegas Hilton). For most NEXPO

’99 attendees (estimated at 10,500), that’s how long it took to get from walking to wagering.

But for three newspaper industry suppliers, the gaming was right there on the NEXPO show floor. For Atex Media Solutions Inc. of Bedford, Mass., Digital Technology International of Springville, Utah, and System Integrators Inc. of Sacramento, the dice flew out of the shooter’s hand when the entrance ribbon was cut. None rolled a seven or 11 (which would make them immediate winners); conversely, none got a two, three or 12 (which would make them immediate losers).

They've all got more dice to toss before winners or losers are determined.

Inside, you'll find Senior Editor Pete Wetmore’s assessment of the three new product strategies -- because to a greater or lesser degree, these aren't so much actual products as directions in which the companies are headed.

There are three commonalities about these disparate systems that are important: each supports the eXtensible Markup Language, each supports Adobe InDesign and each is cross-platform. Though widely different in other ways -- it’s almost as if some Greater Force dictated to them to set off in diverse directions -- these are key similarities.

What Wetmore doesn't discuss is the degree of risk each supplier is taking:

  • For Atex, the gamble is that the competing high-end suppliers (for, make no mistake, Omnex will be among the pricier margarines) have not yet decimated the newspaper marketplace. The recent successes of both CCI Europe and Unisys leave few major metropolitan newspapers eagerly planning on a new front-end system in the near future.

    What’s more, many big longtime Atex customers -- Newsday, New York Daily News, Seattle Times, Orange County Register, Philadelphia Newspapers, the Murdoch papers in London -- are all to some degree installing new CCI or Unisys systems.

    A corollary to this gamble is that industries outside of newspapers will pay any attention to Atex. So, at once, Atex has to win back the hearts and minds of newspapers as well as woo non-newspapers. A daunting task; but Atex has hit a point at which it must throw again (and again).

  • Digital Technology is taking the smallest gamble of the three: It is depending upon its existing customer base to upgrade to the new system. If those customers do, then the research and development cost of NewsSpeed 5.0 undoubtedly will be recouped. New customers will consider DT when they might not have in the past because of Adobe. For DT, the dice came close to hitting a seven or 11.

  • System Integrators is taking the biggest gamble: It is talking about a new business model for selling systems, in addition to creating new systems. Its plan to allow Insiight buyers to specify components of the overall system -- like the proverbial Chinese restaurant menu, where you take one from Column A and one from Column B -- ensures that each site will be different, and this means an increased support role for the company.

    That’s good news for SII, but bad news for customers. Will this plan play? It could be dicey for SII.

    Also inside, you'll get a good look at what the Associated Press has in store for you and your newspaper in the coming months. The cooperative also has chosen a different direction from the past, and Correspondent Marion J. Love gives you the lowdown on the twilight of the AP LeafDesk, GraphicsNet and other AP technologies.

    Wrapping up this issue (there will be more NEXPO coverage in August), we have a pair of reports that discuss computer-to-plate and its enabling technology, page imposition software. Correspondents George Powell and Steven E. Brier take thorough looks at where these technologies are and where they're going.

    Though the game started at NEXPO ’99, a long wait is in store for Atex, DT and SII before they can be considered winners or losers. Over the next two dozen months, the dice will be rolled many times.

    We'll just have to wait to see who makes point and who craps out.

    -- David M. Cole

  • See also Hellbox

    From THE COLE PAPERS, July 1999, Copyright © 1999, All Rights Reserved.

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