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Technology Stocks : Dell Technologies Inc.
DELL 133.59-1.8%Dec 3 3:59 PM EST
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To: Chuzzlewit who wrote (147298)11/12/1999 2:26:00 PM
From: Lee  Read Replies (1) of 176387
 
Hi Chuzz,..Re:. As I see it, the major hurdle (and opportunity) facing Dell is its entrance into new businesses where it can extend its superb business model.

Ashok Kumar alluded to a new direction this morning when he stated Dell would be moving more into the Enterprise market with some help from IBM, (presumably on a service/consulting basis). But if this is the path toward higher margin business, it seems to me that the business model will have to be modified, even if Dell had the service/consultant capability 'in house'.

Also, the ratio of operating/net income is slowly decreasing (from Nov.'98 through Oct.'99) so even if Dell concentrates on core businesses with a focus on making inroads in the Enterprise business segment, it seems they will have to step up considerably the push into Enterprise.

We discussed the entrance into new businesses last year and some thought of some kind of parallel hardware business closely connected with the current product mix while others speculated on a completely different kind of commodity type business. It was my understanding that either of these two types would make the best use of the business model. But if any expansion goes into the service/consulting arena, then other metrics will have to be used.

Just puzzling over some crossroads. <g>

Cheers,

Lee
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