CU Amiga Dec '94 P16-17
THE MEN FROM A.M.I.G.A.
Last month we discussed what was happening to Commodore and
where it is likely to go. Now we go one step further and get the
vision of the two men that matter most.
David Pleasance and Cohn Proudfoot are current Joint Managing
Directors of Commodore UK. They are responsible for the management
buyout bid and their future fortunes are distinctly entwined with
that of the Amiga. We visited them with a camera and a tape
recorder to get some candid views, cutting through the gossip and
the hearsay and getting some straight information.
CU: If the management buyout goes ahead when do you see the
Amiga back in production?
Colin Proudfoot: The buyout process that we're going through has
been described to us as the most complex legal untangling of a
corporation since Maxwell because there are so many jurisdictions
and so many different receivers around the world -there are now ten
creditors committees involved. The process is a step by step one.
What we're trying to do is commence manufacturing as early as
possible in that process, which is when we are confident that our
bid has been accepted, that we are winning the business and are
going through the legal formalities. This could take some months.
What we hope to do is get some product in manufacturing, perhaps
this year, most likely January-February time, but really starting
volume production is going to be over the next year, February
onwards. If we can do anything faster we will, but I think it's
unrealistic to expect that.
CU: You have said before that you will concentrate on the A4000
abroad and the CD32 and Al 200 at home. Is that still the case, or
do you have anything else which you are going to start producing
from scratch at this stage?
David Pleasance: Our responsibility is to fulfil the very high
level of demand for all of our products, which are, in the majority
of cases 1200s and 4000s. They are in demand world-wide. We made
the decision to concentrate on 4000s on the premise that there was
likely to be very long lead times for component parts and we need
less component parts to achieve a turnover figure which is
acceptable to the investors if we do it on 4000s rather than 32s,
for example, because of the sheer cost of the goods. That still
holds. But on the basis that we now know we've missed Christmas we
will be putting the 1200 into
full production as quickly as we possibly can. [Both] will be at
maximum production level at the earliest possible opportunity.
CU: You have also said that you might look at upgrading the Al
200 and A4000 and put out packs with hard drives and extra RAM. Is
that still the case?
DP: Part of our overall plan in the first twelve months of
operation will be to strengthen the brand in terms of product
availability... model availability, so we do intend to bring in
some new models. But I stress that nothing we bring in will put
current models at risk in terms of pricing. People will not be
disadvantaged if they buy something today and we bring out
something in six months time to replace it. It's very important to
stress that. It is strengthening the range rather than replacing
old products with new. We also definitely will be putting into
production, not immediately because it has to be second priority, a
CD-ROM drive for the 1200 and the expansion box for the CD32.
CU: That is very important. Most of the software houses have
said that they will port software across from PC if there is a
fully compatible Al 200 CD-ROM drive, but not just for the CD32 at
the moment.
DP: No, we understand that. And obviously at the same time we're
looking for a CD32 compatible drive for the A4000.
CU: What about the CD64?
DP: The CD64 is a figment of somebody's imagination in terms of
its code name, if you like, but we've been at great pains to
explain to everybody that we believe very strongly in RISC
technology and we have developed our own system which incorporates'
a RISC core. When we develop that system- we're talking about 18
months or so- it is our intention to bring out RISC products both
in the high end station market and the low end consumer market,
which is where our strength is.
CU: At ECTS you announced that AAA was being dropped in favour
of RISC development. At the moment the Amiga's in-built graphics
capabilities, ie AGA, are quite unique distinguishes it from the PC
and Mac. When a RISC based Amiga comes out against RISC competitors
what will its unique selling points be?
DIP: Ours is a complete chipset, in the tradition of Amiga. It
has a real-time 3D rendering engine with full texture mapping,
compatibility with full motion video, MPEG, and also... I'll need
to double check on this [it's not been finally confirmed yet] ...
22 voice, 16-bit stereo [sound]. It is a very comprehensive and
effective system which we're going to be making available in a
modular form, one [where] the low end products will have two
modules, but with the capability to be upgraded. Obviously the hig
workstations will have a lot of modules. We'll be giving the end
user the opportunity to buy at a low entry point and then expand as
their needs require; that in itself is pretty special.
To put things in perspective our estimation is that a CD games
console based on this technology will give a power performance
something like 20 times better than Ultra 64, which we beleive to
the best spec product planned to come out in the near future.
And you're talking about a graphics worstation that is
something like times more powerful than the 4000 for no more money
-and possibly less.
CU: When this machine comes out in 1996/1997 is it going to be
backward compatible with the current range of Amigas?
No, definitely not. This is a departure for Amiga because, as
you know, Motorola's 68060 is the last in that line of chips,
therefore we have nowhere else to go now. So we have to take the
next technological step forward, and that is a completely new
architecture.
Will the Amiga RISC system be cross compatible in some way with
PCs and Macs using RISC based processors?
My understanding is that this particular system will be the most
transparent that's on the market and will be able to run, with
emulation certainly, Macintosh products. But without emulation our
understanding is that this processor will run DOS software through
Windows NT and we have been told that it will run something in the
region of 4-5 times faster than the Pentium.
CU: What would the structure of the new company look like? Would
Maidenhead be the base? Where would manufacturing take place?
We envisage that Maidenhead will be the core of the company,
that's where the management will be. We don't want to create a
monolith overnight and we will expand as fast as the market demand
and sensible expansion plans permit. So we see ourselves initially
as going through distribution. The key markets for the Amiga have
traditionally been UK, Germany, France, Italy, Scandinavia, in
European terms and then the USA for the top end products. What
we're looking at is the UK organisation staying in place, also
keeping Commodore Canada. In manufacturing terms what we said was
we want to manufacture in Europe if we can find the right people to
do that on the right terms and we are currently in negotiations
with various parties in the UK. We would continue to source other
products, say monitors, from the Far East.
We will continue to source products rather than taking on the
manufacturing ourselves and will concentrate on our core strengths
which are product development and marketing.
DP: We will be taking our engineering workforce which is
currently 18 people, in Morristown [USA] and turning it into 60
people as quickly as we can recruit, so that's likely to be a two
to three month process. These will be split into two, possibly
three areas. One is an area of engineers who will be maintaining
and supporting our current technology and from that developing new
derivative products, so that current technology is made to work
harder for us and provide different models to fill some gaps. The
balance of the people will be working on new technology. We are
also going to form a completely new [software and peripheral]
development support team here [in Maidenhead]. We will be bringing
one person over from the US and he'll head up a team of around
about 22 people whose sole job will be to support development.
"We don't want to create a monolith overnight ..."
Colin Proudfoot
---
PROFILES:
DAVID PLEASANCE:
Current job title: Joint MD
Nationality: British
Length of time at Commodore:
Eleven Years
Was there life before Commodore?
Began career in retail finance. Part of the marketing team that
launched Australia's first commercial credit card, Bank Card,
before VISA and MASTERCARD came on the scene. Worked for 3M in
their consumer product division - the people 'who invented post-it
notes' and who have over 87,000 products in production including
floppy disks. Headed up Pioneer's car stereo division in Australia.
Came home to UK and joined Commodore in 1983.
What has he done at Commodore?
Joined as business development manager to sell Commodore PCs. Moved
on to become national accounts manager handling the big retailers
like Dixons and Comet etc. and distributors. Eventually became
National Sales Manager and Sales Director. 1990 saw David moving to
Switzerland to head up Commodore Electronics limited as General
Manager. In 1992 he was promoted to Vice-President of sales in the
USA and in April 1993 took over as Joint
Managing Director of Commodore UK right back in Maidenhead.
What does David see as the three most significant events or
changes that have happened since he joined Commodore? "Being given
the opportunity to market products the way I wanted to: selling
bundles, selling dreams really". "The losses [sustained by
Commodore International] were significant for the wrong reasons,
everybody here took that very badly because it was a bad reflection
on everything that had gone so well here [in the UK]". "The third
thing is this opportunity [the MBO] as a result of all that, to
become a part owner of this world-wide business and to control its
activities."
What has the most difficult thing over the last few months?"At
this moment in time our inability to defini-tively say 'on this day
we can tell you, yes or no [regarding the management buyout and the
Amiga's future]', I think that's been the hardest thing. We're
aware of the need to tell the community - your readers in
particular - that the Amiga is a long term product, that it has a
future, that it's going to be looked after by people who really
care about it."
What interests does David have outside Amiga? Music. He has a
recording studio, the heart of which is, naturally enough, the
Amiga. His big passion is the guitar though. Despite being heavily
involved in an international takeover David still rates himself as
one of the best flamenco players in the country.
And what If the MBO fails?
David will be looking for another job.
COLIN PROUDFOOT
Current job title: Joint MD
Nationality: British
Length of time at Commodore:
Four years
Was there life before Commodore?
Most of Colin's work before Commodore was in the financial world,
though he trained as a production engineer at University. All of
his work has been in high tech industry, starting off with Tube
Investments where he helped implement their computer system, then
moved to Rank Xerox as a financial analyst. Following this he spent
some time at Wang when they were first penetrating the UK,
transforming in three years from a £50m company to a
£175m company. He then set up a management consultancy and
advised businesses of all sizes, including Barclays Bank. Joined
Commodore in 1990.
What has he done at Commodore?
Joined initially as Commercial Controller, then four months later,
in 1991, became finance director and finally join David as Joint MD
in 1993.
What does Colin see as the three most significant events or
changes that have happened he joined Commodore? "Coming out of the
PC MS-DOS market place and focusing the UK businesses on Amiga, is
a key change; building from our strengths rather than trying to
compete in a difficult marketplace. The second key change was
moving from our own UK distribution to sub-contracted distribution
which enabled us to reduce our cost base and be more flexible. The
third major change has to be the parent company going into
liquidation, because from a financial point view all the rules
change."
What has been the most difficult thing over the last few
months'
"I have already answered that question" [The parent company going
liquidation]; "That was both difficult and challenging, but also
very positive because you find out when the parent company goes
into liquidation and you're trying to keep the business in the UK
afloat who your friends are. One of the things that has kept me
going is the volume of support we've had from third parties,
suppliers and customers."
What Interests does Colin have outside Amiga?
Sport: He enjoys golf and skiing.
OK, so what is his favourite Amiga golf game?
No comment.
David is seen as the figurehead by magazine readers, does Colin
mind this?
"Not at all, I'm quite happy to let David get on with it".
And what if the MBO fails?
He doesn't envisage a future with Amiga outside the rules laid down
in the MBO.
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