Compatibility First May Be Near at NCR

NCR Corp. is expected to announce today plans for a new line of computers--from laptops to giant mainframes--that are compatible with each other because they are based on the same microchips and software. It would be an industry first.

Using the same type of Intel Corp. microprocessors--the chips that are the brains of computers--would mean that a laptop, for example, could get at information stored on a mainframe.

The computer lines of most major makers are divided among proprietary, or company-specific, processing systems and “open” systems such as those based on Intel chips. That means that various computers sold by the same company often are incompatible.

The industry has moved toward open systems in recent years because corporations want to be able to use the same applications software, such as spreadsheets or word processing programs, on all computers, no matter what the brand. In addition, computer users increasingly want to connect machines in networks--an often-difficult task with incompatible models.

Though not a major player in general-purpose computers, NCR could reap major rewards from its new direction, said analysts who provided information Monday about the expected announcement. NCR declined to disclose details but scheduled a news conference today.

“You can’t write these guys off as a non-factor anymore,” said Don Young of the investment firm Sanford C. Bernstein & Co. “I think it’s a pretty bold move on their part.”

Dayton, Ohio-based NCR long has specialized in computers for banks and retail stores, and is a major maker of cash registers and automated teller machines. In recent years it has enjoyed success with a line of personal computers built to industry standards using Intel chips.

It now plans to phase out its old computers and use those standards and Intel chips on its entire product line.

NCR would become the first company to sell high-end mainframe computers based on open systems, analysts said. The models would be NCR’s entry into the market for extremely powerful computers.

The new strategy “will potentially open up their rather narrow market into a broad market,” said Rick Martin, an analyst at Prudential-Bache Securities Inc. “The question is, can they be one of the major players? The answer is you just don’t know.”

In coming weeks, NCR also is expected to announce software and networking systems that will allow the new computer line to be connected throughout a company, Martin said.

NCR’s stock closed down $1.50 at $58 in New York Stock Exchange trading.

NCR’s new direction would be another boon to Intel, the Santa Clara chip company that is enjoying phenomenal success. Its chips are so popular with computer makers that it can’t make enough to satisfy demand.

But the news could be troubling to Motorola Inc., which makes chips used in some NCR computers. Intel is already the dominant chip producer.

“Motorola’s microcomputer business is headed for some tough times,” Young said.

NCR sells less than $5 billion worth of computers a year, out of a global market of $200 billion, he said. By comparison, International Business Machines Corp., the industry leader, has sales of about $60 billion.

Earlier this month, IBM announced a new generation of mainframe computers based on a proprietary standard. IBM also said it plans to provide systems that would allow the mainframe computer to control corporate-wide computing networks.

Next month, Unisys Corp., the No. 3 computer maker, also is expected to announce products for connecting computers throughout a company.