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IBM Bundles ViaVoice With Small-Business PCs

The 300GL line starts at $1149, is stocked with software, and can be leased.

By Peggy Watt, PCWorld   

Systems in IBM's 300GL PC series run a 366-MHz Celeron or Pentium II chip and come with 64MB of memory, an 8.4GB hard drive, and a 32X CD-ROM drive. Reseller prices are expected to start at $1149 without a monitor.

Bundled software includes Artisoft's iShare, IBM backup utilities, Norton Anti-Virus, both Microsoft Internet Explorer and Netscape Navigator, Windows 98, and Microsoft Office Small Business Edition. Lotus SmartSuite Millennium is also available. All models also have Ring Central, a telephony feature that manages incoming and outgoing faxes; a 56-kilobits-per-second modem is available. ViaVoice carries a $99 street price.

"IBM is using its broader software portfolio to make its systems more attractive, and that's a good move," says Rob Enderle, senior analyst with Giga Information Group. Gateway bundles Dragon Systems' NaturallySpeaking with rival systems, Enderle notes.

ViaVoice and NaturallySpeaking are the voice recognition leaders, so IBM's move is no surprise, Enderle adds. Dragon Systems has developed more vertical applications, which are likely early uses for voice recognition applications.

"Voice recognition works best not as a keyboard replacement, but for people who can't use a keyboard--either the user is physically disadvantaged, or they're doing something else and need an alternate input system method," Enderle says. For example, physicians in surgery can make notes by voice. Perhaps eventually drivers will enter data by speaking, and keep their hands on the wheel.

But IBM's SMART Reaction and ConfigSafe backup and restore programs provide a bundling edge over Gateway's offering, Enderle adds. He expects more competitive bundling in the small-business market.

The Lease That We Can Do

Small businesses can acquire the systems through IBM Global Financing's new SuccessLease program. Fidelity Leasing is the third-party provider of lease financing and administration. This option joins IBM's SystemXtra flexible financing program, which is aimed at buying commitments of $50,000 within a year; plus a range of support services.

IBM has had lease programs for years. This announcement lowers the entry point, since participants can pay as little as $50 per month. It is similar in structure to a Gateway offering, Enderle notes.

"Leasing makes a great deal of sense for small companies," Enderle adds. "This takes away the issue of disposing of outdated systems. The business is buying a service."

IBM and its rivals are turning new attention to small businesses, which account for 45 percent of the PC market and are the biggest growth area, according to a 1998 report from International Data Corporation. Other recent IBM efforts include small-business marketing programs with CompUSA and OfficeMax.