IBM makes hay of DIN-PACS, wins $25 million in new contracts

Computer firm has netted $32.3 million in orders

IBM is discovering that its gamble to enter the highly competitive PACS market is paying off. In a DIN-PACS award valued at around $25 million, the company's consortium beat out a team led by PACS leader Agfa for orders at 10 U.S. Army sites. The facilities are the latest military installations to sign up for IBM's PowerPACS program, which is IBM's name for its DIN-PACS effort. Installation is expected to begin at the sites by early summer, with completion targeted for the end of the year.

The 10 Army sites are Brooke Army Medical Center, William Beaumont Army Medical Center, Fort Hood, Fort Sill, Fort Huachuca, Fort Leavenworth, Fort Riley, Fort Leonard Wood, Fort Polk, and Fort Carson. The sites will join Portsmouth Naval Medical Treatment Facility in Portsmouth, VA, as awards in IBM's DIN-PACS portfolio (SCAN 3/4/98).

IBM's team has surged to an early lead in the DIN-PACS award derby. With the $7.3 million Portsmouth order, IBM and its partners have tallied $32.3 million in contracts since bidding opened. The team put together by DIN-PACS rival Agfa has yet to win any orders.

IBM's Global Government Industry division has put an internal marketing and engineering infrastructure in place to compete for DIN-PACS, which has a purchasing ceiling of $250 million in 1998 and $1.25 billion over the next five years. But the company doesn't plan to stop there. It is also calling on all government customers that could benefit from PowerPACS, including the Department of Veterans Affairs, the Department of Indian Health, and the National Institutes of Health. And while no decision has been made yet, IBM has also had internal discussions about applying the PowerPACS program to the private sector, said David Anderson, client executive for federal medical customers.

While the Agfa-led team has not yet scored any DIN-PACS bids, it has mobilized its direct sales force and is devoting marketing and engineering resources to compete for DIN-PACS and other government contracts. The Ridgefield Park, NJ, company expects good news in the near future, said Robert Cooke, director of image management systems for Agfa. Agfa's partners in DIN-PACS are Cerner for RIS software, Mitra for RIS integration, and Cabletron for networking components.