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Technology Stocks : Compaq
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To: Jim McMannis who wrote (29304)7/16/1998 9:02:00 AM
From: rudedog   of 97611
 
Jim -
Dell does have worldwide support and distribution with a few exceptions, but they do not have a unified sales and service model so they have difficulty with large agreements with global customers who want a unified distribution and service model. Dell's subsidiary agreements and service contract arrangements do not allow them to execute those kind of deals.

CPQ was in a similar position 3 years ago. They were in a tough situation against HP and IBM who can do that class of deal. This is a hard problem to solve, and CPQ has solved it. This is one more reason why I believe that CPQ will increasingly target HP, IBM and Sun. Dell will compete with CPQ in the volume PC space, not the high end corporate space.
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