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Non-Tech : CompUSA (CPU)
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To: Richard Makowiec who wrote (1718)3/18/1999 1:18:00 PM
From: David B.  Read Replies (1) of 3187
 
<<The company does, though, do a fair amount of pre-sales service and customized enterprise integration, Libert said. He admitted, though, that "we know we need support infrastructure and strategic alliances" to move up into the enterprise as a legitimate player.>>

I read it again. And again, he's referring to enterprise software, among other things, when he says "we know we need support infrastructure and strategic alliances."

Need to do that because that's where the higher margins are. Dell is going up the foodchain:

Hardware
desktops-->notebooks-->servers-->workstations-->storage--> ?

Services
DellWare-->DellPlus-->DellPlus Server Integration-->enterprise support

The higher up the foodchain, the higher the margins. Everybody wants to escape the commodity business of pushing desktops.
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