Amy, here's pretty good article, from Barron's no less, that talks about servers a lot, along with PCs, handhelds, etc.
We've heard the part in bold before, from Barrett:
Perhaps, but Compaq, in part through the acquisitions of Tandem Computers
and Digital Equipment, has also gone out of its way to diversify up the ladder.
The company is now No. 1 in servers, in terms of units sold. "There are
essentially three parts of the 'Net where servers and workstations are being
used, and we are big in all of them," notes Winkler. "At the core of the
infrastructure are the large Unix-based mission-critical systems, the
high-performance servers than can never be allowed to go down. At the edge
of the network are Intel- and Microsoft-based servers that do a lot of content
rendering, such as e-mail or control of communications. The third piece are
the access devices and workstations."
Margins here are much better than for PCs and growth is far higher and far
more sustainable. "We believe the Internet infrastructure five years from now
is less than 5% built," says Winkler. "We feel the market is vastly
under-penetrated and that high-end server market will continue to grow at a
very fast clip."
Message 14488505
Looks to me like Compaq is a buy right now. Make it a strong buy.
Tony |
