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Technology Stocks : Compaq
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To: John Koligman who wrote (87486)12/6/2000 12:03:40 PM
From: Tomcat  Read Replies (2) of 97611
 
Dell is OEMing the CMP architecture from Unisys. Compaq is doing the same thing. Who would you buy a 32P system from, the guys who designed it, Unisys, or some OEM that put their name on it, CPQ or Dell. I don't think any of these guys are going to sell many of these machines.

But, last year Capellas said that they were working on their own 32-way system and that the Unisys OEM was just a way to fill the gap until their own machine was ready. I doubt Dell is designing their own version. They will have to keep OEMing from someone else. Since the Unisys and CPQ deal is a one-shot, Dell will probably take whatever the next generation comes out of Unisys. Can Dell unseat CPQ with this strategy? I don't think so. Businesses are used to paying through the nose for big servers. Look at Sun's sales. I am not sure you can win with price alone in the large server market.
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