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Strategies & Market Trends : Waiting for the big Kahuna

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To: James F. Hopkins who wrote (14868)	3/9/1998 11:51:00 PM
From: Chris McConnel	Read Replies (2) of 94695

Have to agree with you. By buying DEC, CPQ is becomming a full service computer company. Don't think they have a real choice in the matter, a PC company is not going to make enough money just selling boxes alone anymore, not at the prices they are selling them for. The client market is now a commodity market more then ever, and the server market is starting in that direction. The companies that can come in and provide a full range of services will be the ones to win the big contracts. With DEC, CPQ gets some quality hardware and software support people, and Alpha for the high end servers. CPQ is looking beyond DELL and Gateway. Also, MSFT's new Windows Terminal Server (AKA Hyrda) will take a big bite out of client profits. Big companies will be able to leverage their 386 and 486 hardware by loading the Hyrda client and running all the apps on ther server. No money will be made on the clients, but they will need lot's of support services on the server end.

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