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Technology Stocks : Compaq

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To: Satyr who wrote (22797)3/21/1998 12:17:00 AM
From: Obewon   of 97611
 
Here is the key question that must be answered to determine where the commercial PC industry/market is headed.

What common business application requires a 200+MHz PC in a corporate server environment?

My answer:
To my knowledge: None.
So why pay $2000+ for a 300MHz Pentium II machine when you can get the same amount of utility for a $1000 200MHz Pentium with MMX?

The consumer PC business is still firing on all cylinders because entertainment software continues to drive hardware upgrades. Unfortunately, the commercial side doesn't have the same luxury anymore. Further upgraded features of Microsoft Office and other PC programs do not provide the extra utility for most companies to justify continued upgrading to the most recent version (ie the ability of current PC software to increase productivity has plateaued for now). The software that is currently driving office productivity gains is run off the network server and is shared by users. Thus, companies only need to upgrade the server and network rather than each PC.

The major corporate PC makers will need to concentrate in moving into new markets (Europe, former USSR, and China) because existing ones have little incentive to upgrade at this time.

OB
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