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Technology Stocks : Dell Technologies Inc.

DELL 122.70

+0.2%

Nov 18 3:59 PM EST

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To: Jack T. Pearson who wrote (36006)	3/29/1998 1:18:00 PM
From: rudedog	Read Replies (1) of 176387

Jack - I was responding to the paragraph starting I have gotten better service from Dell for free than I was ever able to get from a retailer. . You probably understand the distinctions around service offerings but many on this thread and elsewhere do not. Andersen has made no secret of their opinion that CPQ will now be a competitor rather than a partner. Given that Dell is the last of the 'big 4' not to have developed their own in-house service arm, I can believe that most of the big independent service players want to make it worth Dell's while to continue with the partnering model. Lots of advantages for Dell as the last available partner in this arena - they can cut very favorable deals for referral and third party services, they can easily play the service vendors off against one another, and they can deliver integrated offerings including service without incurring the risks of owning the business. The drawback is that they don't get the revenues or profit stream from the service business either, but given Dell's growth rate, a service business would just be an anchor at this point.

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