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Technology Stocks : Intel Corporation (INTC)

INTC 35.81

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3:59 PM EST

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To: Harry Landsiedel who wrote (99191)	2/16/2000 1:34:00 PM
From: rudedog	Read Replies (1) of 186894

Harry - re: This does not leave out CPQ, but it does challenge them on the price/performance issue doesn't it? I don't think this is a price-performance issue - CPQ's 1u rack servers are twice as dense as DELL's 2u product, with the same performance and price point. This has a lot more to do with the close linkage between Intel engineering and DELL products, and also probably a little bit of redress for the profusion, 820 and coppermine delays which hurt DELL in the market place. DELL is surely a more reliable partner in the hardware space than CPQ, which has its own ideas about the architecture for those "big hulking servers" Barrett refers to. Long term, having a largely captive OEM like DELL is just a safer business decision than opening the door to a partner who is also a competitor, like CPQ.

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