COMDEX – MORE NOISE, LESS SUBSTANCE

It seems to me that for all the hoopla, Comdex is becoming more noise and less substance from a PR perspective. Last year I felt the show had peaked and was declining as THE major venue for the tech industry. Comdex continues to regress to its roots as a business to business show. It is also attracting significant numbers of international participants from Europe, Asia and South America, seeking partners or sales opportunities. Their coming adds to the size but not to the newsworthiness of the show. Based on the (so-called) press releases, these were unsophisticated exhibitors lacking even rudimentary knowledge about how to present themselves to the media. For PR consultants this is a golden new business opportunity -- if these potential clients can be convinced of the need to communicate professionally.

Major Exhibitors Pulling Back

This year was significant for the companies that were not on the floor -- IBM, Dell and AT&T, among others. Other major players said they were seriously evaluating the cost versus value received -- and these were companies with huge spaces on the Convention Center floor. I expect other "biggies" will ratchet down next year.

However, it makes sense that if a company has a major announcement -- e.g. Rockwell’s new spin off and name, Conexant -- that it should spend a bundle to "blast" the entire industry with the news. That is a special situation that won’t be repeated.

Microsoft Territory

I think Comdex is becoming more and more Microsoft’s playground. The millions of dollars poured into their displays, press events and parties rise above the din. One of the highlights of the show is their partner pavilion, which I hear will be larger in ’99 and allow participating companies to spread out more comfortably. (This year, as before, they were literally on top of each other.)

There were changes in the format and logistics. With the expansion of the Convention Center, displays in the Hilton were eliminated, and the space used for keynotes and meeting rooms. The number of keynote speeches was increased and those in the evenings ran into conflicts with long-held party traditions, especially on Monday and Tuesday. Bringing in industry leaders added to the prestige of the event, but my sense is that it diluted the focus on any one presenter. The issue became what to attend. It was impossible to do it all -- spend time on the floor, meet with colleagues and put the hours aside for keynotes. Rumor has it that one heavyweight (CEO) cancelled when he learned about the number of scheduled presentations.

The Microsoft/Oracle Battle

One fascinating battle to watch was the Gates/Ellison engagement. Microsoft, with the introduction of SQL 7, is marching up into Oracle’s Database territory. Oracle, from its lofty perch as DB provider to the Gods of Industry (Larry was quick to point out that the 10 biggest databases in the world on the Internet run on Oracle), decided it was time to make a stand in Bill’s territory. The real news is that Microsoft is committed to the fight. Once the juggernaut is moving, its sweep is overpowering.

While MS efforts will not impact Oracle’s high-end position, Ellison and his team are worried. Larry’s argument for centralized servers rather than a distributed model is only a partial answer to real world situations, especially for mid-sized, multi-locational businesses. His elegant reasoning focuses on high-end businesses with top priority given to the needs of the central office. Microsoft understands the problem from the street level.

What’s New – Or Not

Other observations -- while I am no technical guru, the overall impression I came away with -- was lots of new hardware building on existing products. I didn’t see anything breakthrough. There were some neat personal productivity tools including upgrades to the "Palm Pilot" and new entries in this category. The convergence into one appliance of the cell phone, computer and wireless Internet connections continues. I’m not rushing out to buy anything quite yet -- but I will eventually. Great digital cameras too -- with incredibly miniaturized hard drives -- allow for hours of recording time and easy downloading to the desktop. From there it’s out to the world via e-mail (for better or worse). Flat screen TVs (the size of a large painting and hung on the wall) with impressive clarity (HDTV is here if money is no object) were scattered throughout the show.

COMDEX – The Feel and Energy Level

If you read my last newsletter, I developed a theory, explaining trade show dysfunction, calling it, "Judy’s Theory of Disorientation – Underestimating Confusion and Overestimating our Ability to Cope." Comdex is just about the worst trade show for PR professionals. It is beyond human scale and unmanageable. I haven’t talked to any professional who enjoys "working" Comdex. Everyone wants to leave as soon as possible because the stress and pace are so exhausting. Before flying to Vegas I sent e-mails to last years attendees asking if they were going to be there. At least half of the people who replied did not plan to return in ’98. As one person said, "If I ever attend again, it will be too soon." I’ve collected some of these memorable tidbits and posted them at the end of the newsletter.

So, what did Comdex feel like? It was different from last year. (For a blow by blow description of the pain, see last year’s report, www.jc-a.com/1197news.htm.) With expanded hotel facilities and the new wing of the Convention Center, crowds were smaller. Was attendance down from the 200,000 in ’97? Even on the busiest days, rooms were available at hotels on the strip. The hordes of people who filled the aisles last year and made the simple act of getting from one end of the LVCC to the other a 20 minute shoving match were just not there. The energy level seemed down. There was a more focused, business-like determination to get through the show, go home and get on with the next deadline. For example, Business Wire said there were more press releases issued this year than ever before, yet many originated elsewhere.

A Marketing Support Pavilion?

A new and potentially relevant feature of the show for PR people was the Marketing Support Services Pavilion. Not many folks found it, is my guess -- buried in the back of the lower level of the Sands. EBS, a PR firm out of Chicago, won the contract to promote the pavilion and was given a booth right next to the American Marketing Association, a Ziff Davis Partner in this venture. The purpose was to showcase products and services offered by PR and advertising agencies, tradeshow vendors, event marketing and meeting planner firms, hotel chains, and car rental firms. ZD thinks these vendors will find the opportunity to present their services to potential clients a compelling reason to be in the Pavilion. (We’ll see. I have my doubts.)