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Technology Stocks : Dell Technologies Inc.
DELL 119.41-2.7%3:59 PM EST
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To: edamo who wrote (133029)6/16/1999 5:54:00 PM
From: Meathead  Read Replies (1) of 176387
 
edamo, Re: dell contracts out to wang and unisys for services, can only go so far this way

Wang and Unisys mainly provide basic hardware "break fix" services
on a global scale for Dell accounts. It's not regarded as a profit
center... rather a cost of doing business. This model doesn't
scale much beyond that. Dell basically offers services as
a way to sell hardware but are about to move in a direction that
allows them to offer services for profit.

The types of services Dell needs to get into involve technology
partnering and consulting. Dell is well positioned to move into
this territory because they have built a broad hardware base and
a direct customer relationship... that 1 to 1 relationship gives
them a built-in advantage over some competitors.

Michael has stated this is now an area Dell will focus it's
efforts and it will likely be built from within or it won't be
profitable. Dell outsources some of these services now in
order to win accounts but going forward, Dell's plan appears
to be develop the infrastructure and intellectual base to
reduce reliance on third parties.

In the interim however, we could see more partnering as a
way to provide early entry into new service segments and
to provide a level of consistency for the customer.

It won't happen overnight but the fact that it has become a
direction of high corporate priority means they are focusing
their efforts in the right direction.

MEATHEAD
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