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The Making of Other World Computing
by , 12:05 PM EST, January 25th, 2008
When Larry O'Connor was a teenager, he was frustrated with high prices for Apple II memory, seemingly held artificially high. So he found a source for DRAM memory chips and started building his own Apple II memory cards for sale at a third of what others were charging. Now, twenty some years later, he's running Other World Computing, still selling memory at great prices, and still taking great care of his customers.
At Macworld, TMO sat down and chatted with Lawrence R. O'Connor, the CEO of Other World Computing and the President of Newer Technology. Larry doesn't really focus on the title, however, and for those who looked carefully, his modest Macworld badge simply said "OWC Larry."
 Larry O'Connor, photo courtesy of John Nemerovski ©2008 |
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Ever since Other World Computing was founded in the 1990s, Mr. O'Connor's vision has been to sell the products he uses, create a stable, profitable, fun place to work for his employees, and take great care of his customers.
It shows. Today, Other World Computing has an annual revenue of more than US$54 million and a 30 percent growth in revenue and volume in 2007. Customers are amazingly happy, and the business is doing well. So well, in fact, that Mr. O'Connor has been approached about selling his company to others. Of course, that typically turns into a not so satisfying experience for the unlucky customers who got on board with a company they trusted, and then feel betrayed. Mr. O'Connor has refused, preferring instead to take care of his employees and customers -- and follow that vision steadfastly.
"When people approach me about acquiring my company, I just shrug and tell them, hey, we have great products," Mr. O'Connor told TMO. "And that is what is for sale."
The Newer Technology Connection
One of the building blocks of OWC is Newer Technology. That company, formerly based in Wichita, was well-known for processor and memory upgrades in the 1990s. However, even as the company got into trouble, the original founder worked hard to take care of his customers before the company went under. In 2001, Mr. O'Connor bought Newer Technology for its name recognition and some core technologies. Today, it is the research arm of OWC. Products are designed at their joint facility in Woodstock, Illinois, fabricated by subcontractors, but ultimately assembled and packaged in Woodstock.
Mr. O'Connor wears two hats; he's the CEO of OWC and the president of Newer Technology. However, the man who's running NewerTech for now is Grant Dahlke, their Marketing Manager. Mr. Dahlke is a crisp looking, tall fellow with short hair, rimless eyeglasses and a sparkle in his eyes. TMO spent some time with him too, and as we spoke, the reasons for the success of the two companies became clear. The passion for the customer experience is in both men's DNA.
Mr. Dahlke spoke about the four W's to answer when working with customers. What is it? What's it for? What does it do? What's important about it and why should I buy it? To that end, one of the hallmarks of NewerTech products is the packaging. When you pick up one of their boxes, say a disk drive, the features and benefits leap off the box in a very clear way with colorful, informative type. There are no tricks, and nothing is hidden. On top of that, they have a fanatical attention to detail. For example, every hard disk interface has its corresponding cable in the box. High quality cables. The customer also gets a manual, a customer experience that most companies overlook for the sake of saving a few cents.
Looking to the Future
One of the projects Mr. Dahlke spoke about proudly is the new building they've built in Woodstock. It will be LEED Gold certified, perhaps platinum, and took two and a half years to build. They'll be moving in next month. This standard for environmentally friendly, Green buildings, is seldom achieved because they're at least an order of magnitude more expensive to build. OWC's new building will have, for example, roof sun collectors and optic fiber to bring in outside light, advanced geo-thermal HVAC, and a recyclable water system. Few employers go to this length to create a both efficient and employee friendly building.
An interesting feature of the OWC booth at Macworld was the colored shirts. Management wore red, customer service wore yellow, and technical support wore blue. That's never been seen at Macworld, and added a tenor of Star Trek fun. At least, until this reporter mentioned that red shirts always die first. Mr. O'Connor frowned, but it didn't take long for the response: "Ah, depends on which Star Trek series we're talking about!"
 OWC Booth at Macworld |
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Mr. O'Connor's success, however, hasn't gone to his head. He drives a modest car and lives in a modest house with his wife and two children -- with a third on the way. Instead, he folds the profits back into the company, making sure that they always have the money they need to design new products, create a stable work place, and go the extra mile to make their customers very, very pleased. [And attend Macworld without fail.] One need only go to their Website, make a purchase, and raise an eyebrow as one feels the security and professionalism of the purchase process.
TMO asked Mr. O'Connor where he thinks he'll be in ten years. By the time the conversation got around to that, it was fairly clear that he wouldn't have sold out and be laying on the beach in St. Thomas.
"Ten years?" Mr. O'Connor asked. "Why, I expect to be right there in Woodstock doing what I'm doing now. Paying fanatical attention to my products and customers, educating customers, and helping them get the most from their computer. We want our customers to have the very best expectation of us."
For the next ten years, that's exactly where his customers will want him to be.
[Full Disclosure: OWC has been an advertiser of TMO for quite some time. This was only made apparent to the author after the article was conceived and published, and in no way influenced the article in any way.]
Observer Comments
Fri Jan 25, 2008 1:23 pm Subject: Great story, great company
I have shopped from OWC for years. About two years ago, after purchasing some memory for a G4 iBook, my wife and I ran into trouble. It was disheartening, and very frustrating. We had to do some serious round and round with OWC. I have to say though, Larry stepped up and handled everything himself personally. And to our satisfaction. Until today, I'd never seen a photo of him. Wasn't what I pictured in my mind, but then again, who is?
We still shop with OWC, and I still recommend the company to all my friends and colleagues.
It's a company of people with class. Thanks for the story about them.
About two years ago, I ran into trouble with a product from OWC and the customer service was so dissatisfactory, that I hadn't shopped there again until late last year.
I got a Mercury Elite RAID, which failed in the first month of usage. We'll see how their "support" holds up this time, but my expectations are significantly lower than they used to be.
Seems like Mr. Martellaro forgot to put the tag "Commentary" on this piece, BTW.
Fri Jan 25, 2008 1:52 pm Subject: A most excellent company
I have been a customer for many years and now buy parts for my business and in those years any problem I had were taken care of promptly and some above and beyond. Being a small business I appreciate the attention and pricing that OWC offers and I instill that into my own business where the customer/employees come first and my business excels! We should all learn by example, keep up the good work OWC!
Dan Millet
Owner of iPodFixIt.com
Fri Jan 25, 2008 2:01 pm Subject: Thanks for the article, John.
I've also been a customer for years. I have had a couple of customer satisfaction issues over that time, but they have handled everything as I expect a leading company to do. They're never the lowest price in town, but they are reasonable. The best part is that they are a great reference to help answer the question: Do I buy a new mac, or upgrade my current one? People often ask me that question, I send them there to figure it out for themselves.
One thing I would like to ask Larry is: What the heck is up with this product?
http://eshop.macsales.com/item/Motorola/CACHE256M500PK/
They've been listed on the site for.. I don't even know... foverever? Is it a joke? It must be by now. Either that or there is some strange accounting issue that prevents them from actually disposing of them and writing them off.
I've stopped buying memory from OWC.
Although the company has been good about replacing bad sticks, I have received too many marginal units from them. That's especially frustrating because it's not always clear that the problem lies with bad or out-of-spec memory.
I now only deal with memory suppliers that provide reliable, in-spec memory the first time, every time.
Yes, I thought OWC was great in terms of memory initially. Now I see they are probably only good for good optical drives, hard drives and hard drive cases. I've received several bad reports about their RAM, which is disheartening since I convinced my mother to buy RAM from them when they were good.
They are the only place I know that ships reliably high quality optical drives compatible with all of Apple's optical burning solutions.
Edited, to remove the comment about operating systems as it no longer applies.
I've been shopping with them for years. Only ever had one problem - with a Sonnet Tempo Trio and my weird (although at the time, stock) Beige G3 tower. With Larry's help, we figured out (NO help from Sonnet - never again will I purchase anything from them. ) that there were a small subset of late production G3 towers the card just wouldn't work in.
I happily steer folks to them, and use their products in my own machines.
Fri Jan 25, 2008 3:14 pm Subject: Memory & Apple OS Versions - Logged in now. :)
First the Apple OS Versions:
We have not offered any non-Retail Apple OS Versions for over a year now. When we did, they were clearly advertised as being the gray system discs - they fully licensed and legal - and fully compatible with the same systems the standard retail OS version supported. The versions offered non-retail were also versions that were no longer available in retail. Although many customers found the availability of prior OS versions a nice service, we did choose to cease offerings as some customers - despite extremely clear descriptions that even had pictures of the discs - had different expectations. One of the main issues had to do with extra software typically found on these discs which was not normally included with the Apple OS - which we did NOT advertise/list as part of the product - that couldn't be used, but because was there was an issue ranged. Anyway - to avoid the rare, but often publicized complaint on the grey 'oem' disc OS versions - we fully discontinued those offerings.
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As for memory - few other memory providers to anywhere near the testing and proactive quality control planning that OWC does on Mac memory upgrades. We have a lab with every Mac model that we offer memory for. We don't just hope that memory that passed some 2 second factory short test is fully correct, we maintain full testing in house to ensure it as well as now fully control line testing parameters at our manufacturing sites.
All of our memory for Apple Computers (same applies that in terms of use in non-Apples) meets or exceeds Apple's specification requirements as well as those set forth buy JEDEC. We we use premium components through and through to ensure our customers receive the best quality product possible.
We also offer Techworks, Micron Original, Samsung Original, and Netlist brand modules for customers that have specific preferences/etc. A point of interest - the fail rates on our modules are fewer 5 per thousand, which is comparable or better than the same fail rates experienced on the 'Premium' Factory original modules. And mind you, this fail rate includes modules which may have failed related to a handling event vs. and true defect/bad device.
OWC memory is backed with a Lifetime Advance Replacement warranty. It does neither us nor our customer any good if a module fails. But in such case, we advance out a new module at our expense so any down time inconvenience is not extended by the time it takes for the module of issue to be come back to us. Further, should there be a DOA issue with any memory we ship - again, new product is advanced and we issue a return shipping label to take back the DOA with zero expense to our customer.
there's the quirk or two with Mac memory and we've got such fully documented and make sure our customers get product that won't be an issue. For example... certain PowerMac G4 Mirrored Drive Door Macs have a memory controller that doesn't like a certain major brand chip die - it's a very small percentage, but it was nerve racking as there was nothing out of spec or wrong with modules not working - we now exclude that brand (Infineon/Qimondo) from our part numbers which could be used in that model.
And my favorite... the bus sluing PowerBook G4 AL Models 1.0/1.25GHZ and some 1.33GHz... There are only a couple RIGHT ways to build a module + Specific memory die revs which can be used. When the machines first came out, Micron was A-OK... then a die rev was updated (years ago) and since then NO MICRON based module works in those computers (the aren't the only ones....)... We have TWO part numbers in our system... a universal part number that works with ALL the Powerbook G4 AL models and a lower cost module that we specifically offer for the 1.5GHz PowerBook G4 models and later. The universal part costs more... and 99% of the returns of the non-universal part number are because customers chose the lower cost part because the specs look identical and think it's some rip off that the other universal part is listed for more vs. there actually being a difference.
Anyway - we live, breath, know Mac Memory. And customers new, repeat, and referred add tens of thousands of our memory modules to their Macs each month.
Fri Jan 25, 2008 3:38 pm Subject: I buy a lot of stuff from them
I can't comment on RAM because I have always bought that from the The Chip Merchant here in San Diego. I can always walk in and get a replacement. However, I have been a customer there since my Apple II days and have not yet had a bad product.
Otherwise OWC is where I buy hard drives, internal and external, replacement power bricks for MacBooks, MacBook batteries and all sorts of hardware.
I have a miniStack 2 external drive set up for TimeMachine and am thinking getting another. It also serves as FireWire and USB hub.
A few years ago I received the wrong item; OWC straightened out the problem and was a happy customer.
They are a good business with which to do business.
QuoteOWCLarry wrote:
Anyway - we live, breath, know Mac Memory. And customers new, repeat, and referred add tens of thousands of our memory modules to their Macs each month.
C'mon Larry.. enlighten me. What's up with this:
http://eshop.macsales.com/item/Motorola/CACHE256M500PK/
Fri Jan 25, 2008 4:08 pm Subject: I have one of those PowerMacs 7100s
Quotebrett_x wrote:
C'mon Larry.. enlighten me. What's up with this:
http://eshop.macsales.com/item/Motorola/CACHE256M500PK/
It is not being used anymore and it is taking a few cubic feet of storage space out in the garage. I really should take it to recycling, but I might need the floppy drive some day
QuoteSir Harry Flashman wrote:Quotebrett_x wrote:
C'mon Larry.. enlighten me. What's up with this:
http://eshop.macsales.com/item/Motorola/CACHE256M500PK/
It is not being used anymore and it is taking a few cubic feet of storage space out in the garage. I really should take it to recycling, but I might need the floppy drive some day
Does yours have a l L2 cache card? If not, I know where you can get a deal on a 500 pack of them....
Fri Jan 25, 2008 4:58 pm Subject: Didn't keep me logged in..... anyway...
QuoteAnonymous wrote:
There are actually those still dropping these into 61/71/8100s.. and hey - if you have one with your software, etc (OS 8.5, 7.x, whatever OS) still working and never added it - it's night and day the difference it makes. Sometimes it's better to spend $0.99 than to buy a new Mac when the Mac you got is working great and no reason to replace what's not broke.
Really though - we turned about 10,000 into Christmas ornaments we gave away about 4 years ago - thinking about turning the several thousand we still have left into Key Chains. Recycling them is less friendly than that as no components of any today value on the board and really would just be safe disposal vs. reuse of significant recovered material. It's always better to find a use for something vs. turning it in for 'proper disposal' or recycling. I applaud Apple's old computer disposal program as it results in the proper disposal of systems that would end up in a landfill unsafely... but - at the same time, it's also got some self-interest as it also results in some fewer hand me downs/used systems kept in use for others. There are people all over the world that would love to have systems people here may consider long over due for the junk yard.
Anyway - how's that for answering?
Quotebrett_x wrote:QuoteSir Harry Flashman wrote:Quotebrett_x wrote:
C'mon Larry.. enlighten me. What's up with this:
http://eshop.macsales.com/item/Motorola/CACHE256M500PK/
It is not being used anymore and it is taking a few cubic feet of storage space out in the garage. I really should take it to recycling, but I might need the floppy drive some day
Does yours have a l L2 cache card? If not, I know where you can get a deal on a 500 pack of them....
Actually - there is no issue with ATA/6 hard drives and the PowerBook G3 Lombard... The same is true with the Wallstreet G3s as well, although some of the early high capacity (in their day they were highest capacity) had magnets that interfered with a sleep circuit in the Walltreet - there were some solutions to that. Anyway - that's all long past now too with today's modern drives.
There is no issue with the ATA/6 drives as they are fully backwards compatible. We sell stuff that works and we know how to support the stuff we sell... within 30 days, we also replace defective hard drives with brand new right off the shelf.. after 30 days it's Manufacturer warranty - but within 30 days we'd never send a customer to the manufacturer for a replacement unit, not how we work - and that's no different today than 10 years ago.
Feel free to e-mail me with more details - always seek to make sure all is right when opportunity to do so is there.
QuoteAnonymous wrote:
I did business with OWC for a few years, but stopped early last year after they sold me an ATA-6 drive that ended up being incompatible with my Lombard PB, even though they and Hitachi claim it is compatible. Initially, when it didn't work, OWC told me I had a defective drive, and that I had to deal with Hitachi. I went one replacement round with Hitachi and when it didn't work either, I figured there was an incompatibility issue. A little net search turned up that there is a general incompatibility with Lombard PBs and ATA-6 drives, but by the time I found this out it and requested a return to OWC, OWC flatly refused. A month or so later, OWC reconsidered their position, and offered to give me store credit, but by then it was too late. Should have thought of that the first time I asked, before I wasted months of down time.
Fri Jan 25, 2008 5:31 pm Subject: Larry thank you for the insight
My humble apologies for not keeping up with your offerings, but the last time I looked the OEM of 10.4, 10.3, and 10.2 were there. Now I see they are gone.
And it is interesting to note the bus slewing issue.
Wish you could have more to say to Apple about that, so at least Apple could make a support exchange repair program for those models:
http://www.apple.com/support/exchange_repair/
There continue to be many complaints regarding memory not being recognized on the Aluminum Powerbooks all over Apple Discussions and elsewhere that are not covered by the existing program. Perhaps this bus slewing issue was the issue all along. Do you have any documentation I can point users to about how certain RAM is not good for those Mac models?
I have used OWC's services for a couple of years-buying RAM at extremely good prices for my old iMac G5 and my new Intel 24" aluminium Imac.The memory functioned perfectly and I re-iterate-EXTREMELY low priced!
I have also purchased 2 Mercury Elite Pro HD's -a 500GB for Time Machine
backups and 750GB for media storage and streaming-really impressed with the speed and quality of these drives.
Dealing with OWC is a pleasant,painless way to do business,their delivery is super fast as well.
I wholeheartedly recommend them to any prospective customer.
My congratulations to Larry-you run a fantastic company
Sat Jan 26, 2008 10:04 am Subject: As if you can rely on NewEgg to get compatible drives
NewEgg may be cheaper, but:
1. The RAM you get is not necessarily to spec. Leading to kernel panics. The warranty is provided by the third party manufacturer, not by the seller.
2. The hard drives you get may not have the right firmware, leading to instant data loss.
As for your problem, it may have been a shipping mess up. I would have put them through on a shipping claim. A scratch on the case like that is not normal, and sounds like a forklift got into the package from the shipper. This has happened before in the case of UPS with a one of a kind work of art.
Sat Jan 26, 2008 12:16 pm Subject: Re: Larry thank you for the insight
We have ample documentation as well as very easy demonstration. I do believe Apple does also have the same. In fact, I know Apple does.
Most issues people have are because they buy a module that is not specifically listed to be compatible wit their exact model. Assumptions are made by the general Apple specifications.
Simple solution - buy from a company that is familiar with the systems and can guarantee compatibility. The memory req for those machines is for all of them, it's not random or just a percentage in the case of those AL 1.0GHz/1.25GHz models.
The memory module needs to be able to support and operate correctly during the voltage drop that occurs in a energy economy mode those Powerbooks employed. That's a combination of the correct memory module design as well as memory devices that support it.
Quotegopher wrote:
My humble apologies for not keeping up with your offerings, but the last time I looked the OEM of 10.4, 10.3, and 10.2 were there. Now I see they are gone.
And it is interesting to note the bus slewing issue.
Wish you could have more to say to Apple about that, so at least Apple could make a support exchange repair program for those models:
http://www.apple.com/support/exchange_repair/
There continue to be many complaints regarding memory not being recognized on the Aluminum Powerbooks all over Apple Discussions and elsewhere that are not covered by the existing program. Perhaps this bus slewing issue was the issue all along. Do you have any documentation I can point users to about how certain RAM is not good for those Mac models?