Dreyfus Corp's Ghriskey on $6 Bln IBM-Dell Agreement: Comment
<<New York, Sept. 27 (Bloomberg) -- Tim Ghriskey, a money manager with Dreyfus Corp., comments on International Business Machines Corp.'s $6 billion contract to provide services to Dell Computer Corp. customers. Dreyfus owns about 3.81 million shares of Round Rock, Texas-based Dell.
''It shows that Dell is serious about the services business. Their feeling is they can't effectively build a services business in the near-term. It's more effective to hire IBM.''
''Dell wants to expand into the higher-margin business. Services is a key part of that.''
Dell sees services expanding to about $10 billion in annual sales, up from its current $2 billion, he said:
''This puts in place what's needed to get there.''
On how the agreement will affect competition with Compaq Computer Corp. and Dell's expertise in supporting the Unix operating system:
''Compaq has a better services organization than Dell does now. Part of that is just the nature of their distribution. This kind of agreement can definitely help Dell compete against Compaq with Unix.''
On the impact on Dell's other service providers, Unisys Corp. and Getronics Wang:
''You're not going to get new business if you're Unisys or Wang. You're probably not going to lose businesses, but you're not going to get any new business.''
Sep/27/1999 13:32 >>
~OT~...William: I looked at ARBA and RBAK in the August sell-off....they both have great Long Term prospects and have Rich Valuations. I recently bought AGIL -- it has a lot of upside from the current price, IMO. As I recall DELL is an investor....the firm's software helps companies communicate with partners and suppliers in real time online. They have customers like Nokia, Lucent, and GE Medical Systems, fast growth rates, great ratings from analysts (at firms like Morgan Stanley, H & Q, and Alex Brown), and a market cap. of only $1 Billion.
DELL, of course, continues to be a great stock to hold for the long term. It is amazing how a company with over $20 Billion in revenues can grow as effectively as they can.
Best Regards,
Scott |
