Harvard Bargains Discounts With IBM

Leveraging the power of collective bargaining, the University has hammered out a deal with computer giant IBM that will allow Harvard affiliates to purchase new computers at deep discounts of up to $900.

Starting April 1, Harvard students will be able to take advantage of the discounts by purchasing online. Departments, students, staff, alumni and other affiliates can already buy the specially priced IBM computers and peripherals by telephone.

The largest discounts are available only on certain models—about three laptops and five to six desktops—which are chosen by University officials based on anticipated demand. However, Assistant Provost Daniel D. Moriarty, chief information officer for the university who helped coordinate the project said that University Information Services (UIS) can change the denoted models at any time.

“We had really good prices, but the way to get fantastic prices is having a number of recommended models,” Moriarty said.

“The students I’ve talked to about it who have seen the price list have really just been floored,” Coordinator of Residential Computing Kevin S. Davis ’98 said. “If you price these computers against the open market, its really significant.”

Selected systems include variations of the Thinkpad R, T, X and A series notebooks, and NetVista M42 desktops.

Negotiations on the deal were completed in November as part of a University-wide initiative to streamline product purchasing.

The agreement will make IBM the sole provider of Windows and Intel (WinTel) based computers to all parts of the University.

“Its consistent with [University President Lawrence H. Summers’] efforts to look for these kinds of opportunities to leverage university purchasing power by buying collectively,” Moriarty said.

Though the University’s central administration has mandated that new computers be purchased through IBM, the decision of whether departments at individual schools will take advantage of the agreement is left up to their respective heads, Moriarty said.

But the more sales volume Harvard can deliver to IBM, the lower prices may go in the future, Moriarty said.

He also said that there is a balance to be struck between departmental sovereignty and the power of collective bargaining.

“This is the type of effort where if people act independently, no one can realize the full benefits,” Moriarty said. “There are cases where independence should be cherished, but there are also areas where we need to be careful about not missing opportunities.”

The agreement does not affect Apple computers, which UIS will continue to offer at educational discounts through the Technology Products Center website. Peripherals from a number of other vendors will also remain on sale through UIS.

A committee composed of senior information technology managers from across the University solicited bids from major vendors last fall, after agreeing to negotiate all computer purchases collectively through a single provider.

“We mandated [acting collectively] in central administration, and all the other schools decided to opt in,” Moriarty said.

This degree of voluntary cooperation between all the schools is unusual, Davis said.

“This is a really unique arrangement for Harvard, where technology is always decentralized in so many ways,” Davis said.

Because WinTel systems have become largely generic, the group compared proposals from different vendors under the assumption that the products were essentially equivalent.

“To the average user, they are commodity products,” Moriarty said. “That’s why competitive sourcing is the right thing to do—because they are all very similar products.”

The group chose IBM unanimously based on its pricing and service strategies, Moriarty said.

“IBM really proposed the most aggressive and reproducible price,” Moriarty said. “They were also already the number one choice for laptops in the College.”

But the committee also noted IBM’s commitment to product development, Moriarty said.

“The strategy of IBM is to be a market leader,” Moriarty said. “People are going to be able to get access to more innovative products, particularly for personal purchases.”

The prices and purchasing options for IBM and Apple specials are available on the UIS Technology Services Web site at www.uis.harvard.edu/technology_services/.

—Staff writer Katharine A. Kaplan can be reached at kkaplan@fas.harvard.edu.