Originally prepared as a paper for th 1996 CHECS conference.

                       Purchasing PCs
                      The Moving Target
                      by Peter Shkabara
                Western New Mexico University


Introduction
The  desktop computer has become an essential tool of  every
office. Selecting an appropriate machine to satisfy  a  need
becomes  a  matchmaking game of comparing what is needed  by
the  user  to what is available in the market. After  having
been  the  purchase coordinator for our university,  I  have
prepared some criteria to help in the process.

Assessing the user's needs
Many  users  don't know what their true computer needs  are.
Some  will  mention some processor speed or hard  disk  size
without  really knowing what those figures mean.  The  first
step  in  specifying a computer for purchase is establishing
what the machine will be used for.

On our campus, many of the new computers ended up being used
as  a  fancy  VT terminal replacement. Although  a  PC  with
emulation software has advantages over a terminal, such  use
does not require a fancy new computer.

Here are some suggestions of items to consider:

  *  Will the user run more than one program at a time? -
     multi-tasking
  *  If word processing is a major use, will there be fancy
     layouts which may indicate a need for a larger monitor?
  *  What specific applications does the user plan to use?
     Is a PC or a Mac the proper solution?
  *  How will the documents which are produced be protected
     from failure? - backup methods needed
  *  What operating system and hardware is the user familiar
     with?
  *  Who will the user need to share documents with? Is the
     software and operating system compatible with the others?

Choice of the Operating System
If a Macintosh is chosen, then the Mac OS is the only choice
at  present.  However, the Be and NT operating  systems  may
soon be valid choices for the PowerPC Mac.

There are three available choices of OS for the PC.
  *  DOS plus Windows for Workgroups
  *  Windows 95
  *  Windows NT

Although  some  users  have been resistant  to  leaving  the
familiar Windows for Workgroups environment, Windows 95 is a
better  choice. Win95 offers much easier configuration,  has
many  new user features, and it is more stable than the  old
Windows (I know that is not saying much though).

A  more serious decision is whether to got for Windows NT or
not.  At  WNMU,  we  went with NT for the computers  in  our
Information Systems department while the rest of the  campus
got Win95. Windows NT is the most reliable and stable of the
Windows  series.  The penalty for using  NT  is  its  fairly
stringent   hardware  requirements  and  the   compatibility
problems  with  some  software.  As  fast  hardware  becomes
cheaper  and more software vendors start supporting NT,  the
choice for NT may be easier. For now, Win95 is probably  the
better choice for most users.

Hardware specifications
Once  some  of the software and operating requirements  have
been determined, it is possible to start matching equipment.
There  are three main variables to the hardware that  are  a
cost/performance   consideration.   These   variables    are
applicable to both the PC and the Mac.

  *    Type and speed of processor
  *    Amount of RAM
  *    Size of the hard disk

Because  of  the higher price of a comparably equipped  Mac,
and  the smaller availability of software for it, I strongly
favor  the  PC  computer.  There are  some  applications  in
graphics processing area where the Mac is still better,  and
since the computer is just a tool, it is sometimes advisable
to   simply  provide  the  user  with  whatever   is   their
preference.  However,  I  have found  that  some  users  may
express a desire for a Mac without understanding some of its
limitations. One user I talked with recently, was  surprised
to  learn  that most business computers today were  PCs  and
that newer software for the Mac is not as plentiful.

Regardless of platform, there may be a tendency to want  the
highest speed processor currently available. This is a  very
expensive  proposition. The best value can be found  in  the
level of performance someplace below the "cutting edge." For
example,  today  the  Pentium  133  (MHz)  is  significantly
cheaper than the 166, but not much more than a 120. Once the
processor  itself has gotten down to a price of around  $150
or  less,  then even if a slower processor was  being  given
away for free, the most you can save is the $150! I look for
value  where the processor price has dropped to under  $200.
Only  if  there is a defined need, can the cost of a  faster
machine be justified.

On  the  Macintosh side, Apple has discontinued its line  of
68x00 computers. All of the new Macintoshes are based on the
PowerPC  processor. Within the PowerPC line, however,  there
is  a  range of performance levels. The PowerPC 601 and  602
are  designed for low cost systems. The 603 is primarily for
portables  where low power is a consideration. The  120  MHz
604  is probably the best value for a faster PowerPC at this
time.  All  of the processors mentioned so far  are  32  bit
versions.  The PowerPC 620 is the 64 bit entry which  offers
performance at a price.

The  more RAM the better! For a PowerMac, the minimum for  a
usable  system  is  16 MB. A PC running  Win95  can  survive
reasonably with only 8 MB, but 16 MB is a good investment to
speed operation. Windows NT needs a minimum of 16 MB with 32
MB  strongly  recommended. On my own system at home,  I  run
Windows  NT with 64 MB RAM. Recently, RAM prices  have  come
down  to  the range of $5 per megabyte. However, as this  is
being  written (right at the deadline as usual),  prices  of
RAM have begun to climb again. Keep watch on this item.

Just  as  with  RAM, hard disk prices have been  going  down
rather rapidly. Unfortunately, the size of new software  has
been going up at a pace that seems faster than the increases
in   hard  disk  sizes!  A  Gigabyte  hard  disk  should  be
considered a minimum size for a PC or a Mac. Price of a 2 GB
hard  disk  is  now  under  $300  and  should  be  seriously
considered  for  any new computer purchase.  Recognize  that
Windows  95  by  itself uses around 50 MB of hard  disk  and
office  suites  such as MS Office will eat up  over  30  MB!
Windows  NT will need 90 MB just for the OS. Add a few  more
of  the  newer programs that each use over 20  MB  and  your
large hard disk starts looking smaller.

Accessory items
The  relatively low cost of adding a CD-ROM  to  a  computer
(under  $100) has made it a necessity. Even if the  user  is
not planning to use the CD-ROM, installation of new software
is  made so much easier that this item is likely to pay  its
own way in a short while.

Because   the  hard  disks  are  now  large,  give   serious
consideration to their backup. A Travan tape backup unit can
be  purchased for under $160. The 4mm DAT is still a  better
system,  but  its  cost is around $650.  Backup  tape  cost,
however,  favors the DAT system. Travan costs about $20/tape
while a 90 meter DAT is under $7.

Another  item  to  consider is a UPS (Uninterruptible  Power
Supply).  All  of  the  computers  in  Information   Systems
department  (as  well  as my three computers  at  home)  are
protected  by UPSs. Cost of a 450VA unit is under  $170  and
will provide about 20 minutes of backup power to a PC with a
17  inch  monitor. The UPS also protects the equipment  from
power surges in addition to protecting from data loss.  With
the number of thunderstorms that we get in the area, the UPS
is a "must have" item.

Many  users  wanted  (and got) sound  cards  for  their  new
computers.  Although  the addition of  sound  to  an  office
computer  is  of dubious value, cost of such  cards  is  now
under  $40 and is not a major item of dispute. Use your  own
judgment in this area.

Most  users will need to share information with one  another
as  well  as access the campus central computers. A  network
card  can be purchased for as little as $18. This should  be
considered standard equipment for all new purchases.

Monitor size
Although  many  of the new 14 inch monitors are  now  rather
good, there is still a difference in display quality between
them  and the 15 inch models. Cost of a good 15 inch monitor
is  under  $300 and should be considered the base level  for
any computer. Characteristics that should be considered in a
monitor:

  *  Flatness of the picture tube - cheaper models often
     have a curved surface. A flat face helps reduce glare.

  *  Actual display size. The advertised size refers to the
     diagonal size of the glass of the picture tube. Different
     models may produce actual images which may be smaller or
     larger than others. Because of lawsuits by several states,
     most advertisers now include the dimension for actual
     viewing area.

  *  Display dot pitch - the spacing between color dots on
     the screen. The largest value that should be acceptable
     today is 0.28mm. Many monitors now have dot pitch of only
     0.26mm. The smaller the dot pitch, the sharper the image
     will be.

  *  Display resolution - the number of scan lines and dots
     per line used to produce the display. For PCs, the available
     values are 640x480, 800x600, 1152x768, 1024x768, 1280x1024,
     and 1600x1200. Macs have similar values. Although the
     setting is a matter of personal preference, the practical
     limit is based on monitor size. On a 15 inch monitor most
     users prefer 800x600, although 1024x768 is possible. On a 17
     inch monitor 1024x768 will most likely be used.

  *  Refresh rate - the number of times per second that the
     image is reproduced on the screen. This is a number
     specified in units called Hertz (Hz) which means cycles per
     second. A rate of less than 70 Hz will produce a perceptible
     flicker resulting in eye strain. Refresh rate is linked to
     the display resolution and monitor size. It is harder to
     have a high refresh rate with high resolution and large
     monitors. When looking at refresh rate numbers for a
     monitor, make sure that the rate is at the resolution you
     are planning to run it at. For 15 inch monitors, a minimum
     rate of 75 Hz should be expected for all resolutions. A 17
     inch monitor should have a minimum rate of 70 Hz at a
     resolution of 1024x768.

  *  Low radiation. The Swedish government has set
     electromagnetic radiation limits for monitors sold in
     Sweden. Most monitors now comply with the MPR II
     specification. This compliance should be expected in any
     monitors purchased.

Although a larger monitor may seem to be a good idea,  there
are  also disadvantages. Some of our users had asked for  17
inch monitors only to discover that they lost a large amount
of desk space! The 17 inch models will weigh in at 40 lbs or
more and are usually fairly bulky.

The moving target
The  rate  of  change in computer performance specifications
seems to be accelerating. A recent example is that of the CD-
ROM. In December of 1995, the quad speed CD-ROM at $130  was
the norm. Today the quad speed drive is almost impossible to
find. It had been replaced by a six speed device that had  a
life  of only a few months. The eight speed took over for  a
short  while,  and now the ten speed CD-ROM  drive  is  fast
becoming  the  standard. This represents three steps  taking
place in a period of less than a year. Concurrent with these
spec changes, the prices were equally volatile. Cost of a CD-
ROM  drive  had been dropping, then going up as  the  higher
speed  device  took  over. While the cost  of  a  drive  had
dropped  at one point to as low as $50, today it  will  cost
about $90 for an eight speed device.

RAM  prices became very volatile this year. The cost of  RAM
had  long  stood  at  about  $40 per  megabyte.  Due  to  an
oversupply, the prices took a slide since December till they
recently  stood at only $5 per megabyte. As of this writing,
the  prices are starting back up since manufacturers had cut
productions and the surplus is drying up.

In   Pentium   machines,  the  75  MHz  version   has   been
discontinued,  although AMD is producing some  clone  parts.
Today the entry level is a Pentium 133 where it was still  a
premium  device  only  a  few months  ago.  Apple  has  also
discontinued  many  of  the  lower  end  machines   and   is
concentrating  on  the  higher  performance,  higher  priced
computers.  Prices of the Macs have also been dropping.  Or,
more  precisely, you can now purchase a better Mac  for  the
same price that you paid for a simpler Mac only a few months
back.

Warranty and maintenance
Most  computers come with a one year on-site warranty. There
are  vendors who offer two and even three year warranty with
the  first  year  on-site. Read the warranty  specifications
carefully. Many vendors claim the extended warranty, but the
fine  print says that it only covers the cost of parts,  NOT
labor.  The  catch is that the unit needs to be returned  to
the vendor for warranty repair and thus the labor charge has
to be paid.

If  your  facility can support the repair of computers,  the
value of a longer warranty can be factored in when comparing
prices  from different vendors. As a figure of $75 per  year
per  computer  can  give  you  a  good  starting  point  for
comparison purposes. Since most vendors will try to get  you
to  first troubleshoot the computer and fix it yourself, the
value of an extended warranty may be questioned.

The  maintenance of PCs can "eat your lunch" if  you  are  a
campus  computer center responsible for them.  This  can  be
especially distressing if users bypass your department  when
they order the equipment and then expect you to maintain  it
when  it  fails. Try to establish purchasing standards  that
include consideration for warranty support. For example, all
Macintosh  computers  come with only a  one  year  warranty.
Extended  coverage is offered only towards the  end  of  the
first year, not at the time of purchase.

Selection of a vendor
Sometimes the choice of vendor is dictated by the time frame
for  the  purchase.  By state law, most  computer  purchases
fall  in the category requiring a bid process. To avoid  the
bid, you may chose a vendor who is on a state contract.  For
many  this becomes a Gateway 2000. Although there are better
computers, cheaper computers, and better values to be found,
Gateway  is a formidable vendor. My latest comparisons  show
that  a Gateway machine is about $150 to $200 more expensive
than  the best value I could find. These figures are arrived
at  after factoring in the value of software bundled and the
3 year warranty offered by Gateway.

Although many vendors will want your business, and they  may
offer  "bargain" prices, it is important to  check  out  how
good  the  warranty support may be. In particular, will  the
vendor still be in business in three years?

Paying extra for a "premium" vendor may not always be a good
decision.   With  the  very  rapid  change  in   technology,
computers  have a practical lifetime of about  3  years.  At
that  point, the machines will likely become "hand me downs"
from  the  real  users to those just getting  into  using  a
computer.

Software requirements
Don't forget to add the software when you buy a computer.  A
computer without application software is not much use beyond
playing   Solitaire  to  pass  the  time!  It  is  best   to
standardize on a package of business software to include  on
all  computers.  At WNMU we chose to include  the  Microsoft
Office   Professional  on  all  computers   purchased.   The
exceptions  were  certain teaching labs  where  it  was  not
needed or computers for library patron use in accessing  CD-
ROMs.

When  buying from a larger vendor such as Gateway  or  Dell,
the  office  suite will likely be included. Check  with  the
vendor  how much value is assigned to the software.  If  you
can  buy  the  computer  without the  application  software,
consider  its value. Microsoft in particular, has  excellent
values for educational institutions. A license for Microsoft
Office  Pro costs about $50. You don't get any books with  a
license, but most users don't need the kind of manuals  that
come with this software anyway.

In  addition  to  the "standard package" of  software,  your
users  may  need special applications to fill  a  particular
need. Most users will also need to have connectivity to  the
campus   central  computers.  This  will  require  emulation
software.  There  is  an  excellent  product  called   Anzio
available  for only $20 per license. A shareware version  is
available  to  try  out.  This is not  a  fancy  "bells  and
whistles"  product, but it does a good job of emulation  and
allows the keyboard to be remapped to the terminal needs.

Case study of WNMU
After years of deferred purchases (budget problems that  you
probably don't know anything about), WNMU went on a computer
buying  spree starting in June of 1995. The first  round  of
computers came from Gateway. These were Pentium 75 with 8 MB
of  RAM  and  500  MB  hard disks. All machines  included  a
network card and MS Office Pro. Although the computers  came
with Windows for Workgroups, we later received and installed
Windows 95.

In  December, another round of purchases occurred. This time
we  went  to  bid. Specifications were written  to  describe
computers with 15 inch and 17 inch monitors, 1 MB and  2  MB
video memory, 500 MB and 1 GB hard disk, and 8 MB versus  16
MB  of RAM. Minimum performance specs were included for  the
video board in the computer and the monitor to ensure crisp,
flicker  free displays. All machines were to have a  Pentium
75 and a quad speed CD-ROM.

We  received seven bids. Several were easy to dismiss  since
the  quotes  were up to twice the price of the  lowest  bid.
Although  we are a Digital shop, the price of Digital's  PCs
was   prohibitive.  Three  vendors  had  quotes  that   were
reasonable,  but  the  options that  each  offered  required
making  adjustments  for comparison.  For  example,  Gateway
offered  a  three year warranty and bundled software,  while
another  had  only  a  one year warranty  and  no  software.
However,  Gateway had no cache RAM on the motherboard  while
the  others  did. Every vendor needed some sort of  variance
from the specifications in order to be considered.

The final analysis showed that for a small purchase, Gateway
would  be  best,  but for the number of  computers  we  were
considering (30 units to start), two other vendors offered a
better deal. The bundled software was only worth $60  to  us
since  we  could  get a Microsoft license and  CD  for  that
price. Additional warranty beyond the first year would  cost
us  $75  per year. We decided to "self insure" and put  $125
per machine aside into a warranty fund. Our greatest concern
regarding warranty was the monitors, and they were warranted
for  two years already. All computers would have Windows  95
installed.

It  was still difficult to compare the two lowest bids. Some
configurations were cheaper from one, while the other vendor
was cheaper for the other configuration. We did not want  to
split the order because we would then have to deal with  two
vendors  and  have two different computers to maintain.  The
average  cost  difference between the two vendors  was  less
than  $30  per computer when all adjustments were  made.  We
finally chose the larger of the two vendors for two reasons.

  *  A larger vendor could be expected to still be there in
     three years.

  *  The salesman I was dealing with at the smaller vendor
     chose to leave for another company. I did not feel
     comfortable dealing with a small company I did not know and
     had no person there that I had prior experience with.

The  winning  vendor  was  Liuski International  with  their
Magitronic  line  of computers. This company  usually  deals
only  with resellers, but had recently set up operations  to
deal with government agencies and educational institutions.
Based  on  the  December bid, we continued to buy  computers
through  the  end  of  June, 1996. The prices  we  paid  for
computers  purchased  later  were  lower  and  we  got  more
computer  for the money. This is a fact of life in the  fast
changing world of computer technology. The last computers we
purchased were Pentium 100 and Pentium 133 with most of them
getting 16 MB of RAM.

There  was  an  unfortunate experience  with  the  computers
purchased in December. Due to a component vendor's change in
design,  there  was a high failure rate of the  motherboards
from the December lot. Of 30 computers purchased then, eight
failed  by  May. Computers purchased later used a  different
component and seem to be reliable. We also had a failure  of
three monitors out of over 80 total purchases.

Keeping    track   of   prices,   adapting   the    purchase
specifications,   placing   the   orders,   and   monitoring
deliveries became a time consuming chore. Although I enjoyed
the  process, I found it very difficult to keep up with  all
of  the  extra  work  load. If you are  to  attempt  such  a
procedure, expect to assign a PC expert to do this on a full
time basis.

In August 1996, I moved from the IS department to a one year
teaching assignment. My departure stopped the "other vendor"
purchases and WNMU reverted back to buying from Gateway.  My
calculations  show  that  we are  currently  paying  a  $200
premium  for  the  Gateway, but it does  make  the  purchase
process much easier.

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