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Technology Stocks : Intel Corporation (INTC)
INTC 34.50+2.6%Nov 21 9:30 AM EST
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To: G.M. Flinn who wrote (50133)3/8/1998 8:06:00 AM
From: Lizzie Tudor  Read Replies (1) of 186894
 
Should CPQ sell a nearly identical machine to DELL it will either make less
money or lose money.

I wonder how many of you really know about the internal infrastructure of Dell. They have made little or no investment in infrastructure, really. Their order management system still runs on a 15 year old mainframe. Its almost impossible to find out at any moment in time what the backlog really is. They have tried to modernize but since there are literally hundreds of disparate systems (most of which were developed by some financial guy on a PC who had no support from any type of IT organization) its a really daunting task and their first crack at a SAP implementation failed to a tune of 37MM. Next they are trying to replace the mainframe with Oracle - a noble goal of course, but the mgmt has decided that since they are upgrading (and the implementation will be done next year they THINK there is no need for any Y2K fixes on the mainframe. Does that sound like good strategic planning to you?

In the short term you can save money by not investing in infrastructure for sure. Long term your business falls apart. Ironically, they had an IS meltdown a few years ago (1994?) I wonder how long it will be till the next one.

I am not disputing the fact that their web page looks nice, and is updated frequently.

Michelle
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