MPC's woes create computer crunch
School districts scramble for parts, service in wake of bankruptcy
By Earl Horlyk | Posted: Wednesday, November 12, 2008
Shane Steckelberg, Dakota Valley School's director of technology shows computers at the district's elementary school in North Sioux City Monday. (Staff photo by Tim Hynds)
NORTH SIOUX CITY -- Shane Steckelberg is taking stock inside his school's "computer graveyard."
Many of the laptops, desktops and tablet computers that line the shelves of his office boast hand-written sticky notes that read: "Bad keyboard," "Bad motherboard" or "Failure unknown."
But Steckelberg knows that some of the Gateway computers piling up at Dakota Valley Elementary School office will never be fixed.
"If we can't get the parts," said Steckelberg, the director of technology for the Dakota Valley School District, "we can't fix the machines."
Getting the parts has become more difficult. On Friday, MPC Corp, the Idaho-based company that supplied Gateway computers to many South Dakota schools as part of the state's laptop program, filed for federal bankruptcy protection.
CEO John Yeros said Friday that the filing was necessary because of "unforeseen" issues surrounding the firm's integration with the Gateway unit, and a recent dispute with its manufacturing partner Flextronics. Flextronics has stopped supplying MPC with products and services.
"We knew parts have been hard to come by and replacements were taking much longer than necessary," Steckelberg said. "But we have no idea what this bankruptcy will mean to us."
In 2007, Gateway sold its professional segment, the division which sells to schools and businesses, to MPC. As a result of significant losses at MPC, at least 100 jobs were cut from the company's North Sioux City facility last week. More than 200 employees were laid off from MPC's Nampa, Idaho corporate headquarters and manufacturing plant.
Many of the 11,000 computers used by South Dakota schools are Gateways, according to Wade Pogany, director of curriculum and instruction with the state Department of Education. This includes the computers school districts involved in the state's Classroom Connection program. Begun in 2006, Classroom Connections provides every student with his own tablet computer.
"Luckily, we have a large enough cushion of replacement computers and parts for our tablets," said Elk-Point-Jefferson School District Technology Director Jerry Klumper. "Unfortunately, we know that cushion won't last for long."
Even before MPC's bankruptcy, Steckelberg said the lack of parts and late deliveries of Gateway computers had become a major concern, not just for Dakota Valley but for school districts across the state.
Pogany told the Associated Press that the state didn't anticipate a parts problem with the computer company until late summer. But he's been in contact with MPC, "trying to figure out what the problem is." More than 1,000 state and school Gateway laptops are currently awaiting parts, according to Otto Doll, commissioner of South Dakota's Bureau of Information and Telecommunications.
Elk Point-Jefferson is one of the 57 school districts involved in the state's computer initiative, Klumper said, and the vast majority of the district's 258 tablets, 150 desktops and 40 laptops are from Gateway.
Although Dakota Valley is not a Classroom Connections school, Steckelberg said, his district received much of the same technology funding that Elk Point- Jefferson had.
Steckelberg was also one of the technical personnel who attended a statewide school professional development conference on Oct. 3. During that meeting, Gateway was replaced by Hewlett-Packard as the state's new computer vendor.
"We hope things will work out," he said. "But we're definitely taking a wait and see attitude."
The Associated Press contributed to this story.
Sioux City's Gateway decision looks golden
Troy Thomas, who spent 15 years working for Gateway before becoming the purchasing manager for the Sioux City Community School District, said the district's decision to switch to Dell is paying off.
"On the one hand, having the district switch from Gateway to Dell in November 2007 was a very tough decision to make because it was so controversial," he said. "Gateway was a good company that provided good jobs so it was important to the district's student population."
"But on the other hand, making the switch just made good financial sense. Given MPC's managerial turmoil and the fact that their bid was 23 percent more than their competitor, signing an exclusive contract with Dell made perfect sense."
Out of the Sioux City school district's 4,000 computers, the majority are still Gateways.
According to Sioux City Community School District's technical director John Pritchard, the district has not been able to receive parts for the Gateways still under warranty.
"We haven't been able to reach (MPC's) technical support," he said. "Fortunately, the district's IT department has been able to resolve the issues by themselves."
The South Sioux City School District currently uses Dell computers while Le Mars Community Schools use Hewlett Packard. According to Sergeant Bluff-Luton Community School District Superintendent Rod Earleywine, all of his district's computers are Gateway.
"The bulk of our computers are still under the manufacturer's warranty," he added.
What will MPC's bankruptcy and the shortage of Gateway parts mean to Earleywine's school district's computers?
"I'm not sure," he said. "I wished I did but I really don't know."
Many of the laptops, desktops and tablet computers that line the shelves of his office boast hand-written sticky notes that read: "Bad keyboard," "Bad motherboard" or "Failure unknown."
But Steckelberg knows that some of the Gateway computers piling up at Dakota Valley Elementary School office will never be fixed.
"If we can't get the parts," said Steckelberg, the director of technology for the Dakota Valley School District, "we can't fix the machines."
Getting the parts has become more difficult. On Friday, MPC Corp, the Idaho-based company that supplied Gateway computers to many South Dakota schools as part of the state's laptop program, filed for federal bankruptcy protection.
CEO John Yeros said Friday that the filing was necessary because of "unforeseen" issues surrounding the firm's integration with the Gateway unit, and a recent dispute with its manufacturing partner Flextronics. Flextronics has stopped supplying MPC with products and services.
"We knew parts have been hard to come by and replacements were taking much longer than necessary," Steckelberg said. "But we have no idea what this bankruptcy will mean to us."
In 2007, Gateway sold its professional segment, the division which sells to schools and businesses, to MPC. As a result of significant losses at MPC, at least 100 jobs were cut from the company's North Sioux City facility last week. More than 200 employees were laid off from MPC's Nampa, Idaho corporate headquarters and manufacturing plant.
Many of the 11,000 computers used by South Dakota schools are Gateways, according to Wade Pogany, director of curriculum and instruction with the state Department of Education. This includes the computers school districts involved in the state's Classroom Connection program. Begun in 2006, Classroom Connections provides every student with his own tablet computer.
"Luckily, we have a large enough cushion of replacement computers and parts for our tablets," said Elk-Point-Jefferson School District Technology Director Jerry Klumper. "Unfortunately, we know that cushion won't last for long."
Even before MPC's bankruptcy, Steckelberg said the lack of parts and late deliveries of Gateway computers had become a major concern, not just for Dakota Valley but for school districts across the state.
Pogany told the Associated Press that the state didn't anticipate a parts problem with the computer company until late summer. But he's been in contact with MPC, "trying to figure out what the problem is." More than 1,000 state and school Gateway laptops are currently awaiting parts, according to Otto Doll, commissioner of South Dakota's Bureau of Information and Telecommunications.
Elk Point-Jefferson is one of the 57 school districts involved in the state's computer initiative, Klumper said, and the vast majority of the district's 258 tablets, 150 desktops and 40 laptops are from Gateway.
Although Dakota Valley is not a Classroom Connections school, Steckelberg said, his district received much of the same technology funding that Elk Point- Jefferson had.
Steckelberg was also one of the technical personnel who attended a statewide school professional development conference on Oct. 3. During that meeting, Gateway was replaced by Hewlett-Packard as the state's new computer vendor.
"We hope things will work out," he said. "But we're definitely taking a wait and see attitude."
The Associated Press contributed to this story.
Sioux City's Gateway decision looks golden
Troy Thomas, who spent 15 years working for Gateway before becoming the purchasing manager for the Sioux City Community School District, said the district's decision to switch to Dell is paying off.
"On the one hand, having the district switch from Gateway to Dell in November 2007 was a very tough decision to make because it was so controversial," he said. "Gateway was a good company that provided good jobs so it was important to the district's student population."
"But on the other hand, making the switch just made good financial sense. Given MPC's managerial turmoil and the fact that their bid was 23 percent more than their competitor, signing an exclusive contract with Dell made perfect sense."
Out of the Sioux City school district's 4,000 computers, the majority are still Gateways.
According to Sioux City Community School District's technical director John Pritchard, the district has not been able to receive parts for the Gateways still under warranty.
"We haven't been able to reach (MPC's) technical support," he said. "Fortunately, the district's IT department has been able to resolve the issues by themselves."
The South Sioux City School District currently uses Dell computers while Le Mars Community Schools use Hewlett Packard. According to Sergeant Bluff-Luton Community School District Superintendent Rod Earleywine, all of his district's computers are Gateway.
"The bulk of our computers are still under the manufacturer's warranty," he added.
What will MPC's bankruptcy and the shortage of Gateway parts mean to Earleywine's school district's computers?
"I'm not sure," he said. "I wished I did but I really don't know."
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Jeff wrote on Nov 17, 2008 11:47 AM:
Hammer wrote on Nov 17, 2008 11:33 AM:
Ted wrote on Nov 17, 2008 10:58 AM:
Good luck, S.C.; we had a good run! "
crazy wrote on Nov 15, 2008 2:58 PM:
Steve wrote on Nov 13, 2008 7:15 AM: