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Technology Stocks : Dell Technologies Inc.

DELL 122.55

+4.4%

Nov 21 9:30 AM EST

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To: OLDTRADER who wrote (149124)	12/13/1999 10:58:00 AM
From: rudedog	Read Replies (3) of 176387

wbm - several assumptions in your post which I would question - When IBM folds it's PC business into DELL I know there has been a lot of talk about this on the thread but I have not seen anything in IBM's moves which would support this notion. IBM recently put their #2 guy in charge of their volume server business - they obviously intend to keep that for themselves. They also have done a number of deals with ACER, who is already their supplier for much of the Aptiva consumer line - I doubt that there is any reason for them to shift that business to DELL, especially since they plan to compete with DELL as a direct consumer marketer. That leaves only IBM's commercial desktop business. I don't see a business case where IBM would have a reason to have DELL do that work. I think it is much more likely that IBM will use its services presence as a trojan horse in DELL accounts, as they have done with other vendors. They might obey the "letter of the law" when it comes to PC sales, but what about those high margin back-end pieces? Shift those to RS6000, or even AS400? And since DELL has no offerings in that space, who's to say whether the customer might have bought DELL servers if IBM had not been in the account? As far as "$50B in revenues" - the last guy who advanced that as a "strategic goal" was Eckhard Pfeiffer at CPQ, and you see how well it worked for them. I would be more impressed with something that won a few hearts and minds. I'm not too impressed with just "more of the same" given the stock performance we have seen this year on what was really fine traditional execution by DELL. They obviously need to do something more than just turn up the volume on their current strengths.

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