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Technology Stocks : Compaq

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To: Jim McMannis who wrote (14907)1/26/1998 10:15:00 AM
From: John Koligman   of 97611
 
Jim,
One reason IBM and HP are successful in the enterprise is that they have the people in sales and service support to back the systems up. CPQ has stated they are going after the enterprise in a big way, and they don't have the support infrastructure (people) today. DEC has a large service/support arm, and I think that is what CPQ wants. Remember, DEC as a hardware company has pretty much been gutted, they sold Alpha to Intel, and their networking arm to Cabletron. It's obvious that Palmer (CEO), was prepping the company for sale. Also, if you look at IBM's growth, most of it over the past few years has come from their services arm, so this business is a strong one. With Merced coming out not too long from now, CPQ management is positioning the company for continued enterprise level growth...

John
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