Larry,
Hi!!
Yes, world events and the unknown will always dominate the short term...I'm never gonna be smart enough to play the market...Decided that long ago...
I just love winners...Negative people will always be losers in my mind...
RE: Also, it's a low margin business, except for the toners and inks.
I believe I read somewhere that HWP receives something like 80% margin on the ink...And, it may be the only profitable end of the business...By DELL even entering this area the leverage which can be applied on contracts is staggering...And, I believe it's Michael's goal to own it all...So putting any financial hurt on HWP/CPQ is a plus...Sure, the short haul things out there are tough...But, it's still the DELL strategy to steal market share...That hasn't changed...
As far as the printing/ink benefits: Talking with the DELL people at shareholders meetings or during visits...Well, it's a long conversation about the actual process of why corporations funnel bids in various directions...Hard to explain here...But, business' want the best value and a relationship...By adding a printer/service and ink deal DELL will be able to court a much higher % of business' that want the total package...Not the sharpest tack in the box here...But, while talking to an XON executive awhile back... he attempted to explain why he couldn't pull the entire lever for all DELL because of and because of and because of...What I did learn is he WANTED TO...IF DELL had this and this to offer...He loved the relationship and what they were already doing for DELL...He was very sincere and only wished DELL could add the entire package...
Best,Kemble |
