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Technology Stocks : Compaq
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To: Steve Porter who wrote (15111)1/26/1998 11:34:00 PM
From: Craig Freeman  Read Replies (1) of 97611
 
Steve, you must be too young to know that many DEC clients bought their systems before CPQ manufactured its first desktop PC. I have a few DEC users as clients and despite the age and ineffeciencies of their systems, they would rather pay DEC thousands of dollars every month to keep them alive than to pay far less to lease modern systems.

It's a matter of "if it ain't broke don't fix it". When it finally breaks, CPQ is now virtually guaranteed to get the replacement sale. And most of those sales will be of overengineered, overpriced servers with incredible markups and incredibly profitable support billings for years to come.

Craig
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