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Technology Stocks : Dell Technologies Inc.
DELL 114.44-3.4%Jan 30 9:30 AM EST
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To: Meathead who wrote (27885)1/18/1998 9:26:00 PM
From: jim kelley  Read Replies (1) of 176388
 
Meathead,

Re: Speculations on the IDC predictions

The IDC predictions for the NC and Net appliances indicate that the business centric model of the PC will become obsolete and a server centric model will become dominant. They also predict that web sales will be a neccessity starting this year. It would appear that DELL is ideally positioned to take advantage of this shift in focus between now and 2005. I guess thay would need appliance and server factories to handle this kind of business. They already have server factories so the appliance factory would be the only new creation. On devices this small, the manufacturing processes would need to be highly automated. JIT/BTO manufacturing processes are still optimal. Also, service proceedures would have to be different and more cost effective- but failures should be less.

In short, it looks like an opportunity to extend and refine the direct model. It is not bad news for DELL should these predictions become reality.
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