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Technology Stocks : Compaq

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To: rudedog who wrote (76699)1/26/2000 11:18:00 AM
From: The Duke of URLĀ©  Read Replies (1) of 97611
 
Rude:

I did not quite follow your numbers, but I think you should add to your equation, the asps for Departmental 4 and 8 way servers.

Compaq is using the Ipac as a "loss leader". I am not implying that they will loose money on ipac sales, but it is not the main purpose.

The Ipac is the door opener to the departmental servers. The indication of this will be some special ease of connection between the two. This also would imply that Q is about to release the 'iServer'.

The strategy is much the same as Apple used to break into Business, ie they had the best graphics. This was about 1985. There was no way IT was going to buy Macs, but the graphics were so compelling, departments bought them on their own. But Apple didn't have a follow on product, they were just happy enough to get in the door. I think Q will, and that will be a sale of a departmental server.

So the profit goal is the sale on the turnkey combined systems, I don't know maybe email gizmos, prepackaged firewalls, some special implementation of NT, etc.

Grassy Knolls?? :)))

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