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Technology Stocks : Dell Technologies Inc.

DELL 129.24

+0.7%

Dec 26 9:30 AM EST

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To: Robert Scott Diver who wrote (38194)	4/17/1998 1:51:00 PM
From: Jim Patterson	of 176387

re: Hardware is a relatively small percentage of the total cost. More servers generally equates to higher overhead. Scott And Scott, this is exactly why CPQ is buying 24,000 support personnel in the form of Digital Equipment. CPU, IBM, and HWP will and do have the support capabality and personel. On the other hand, DELL will be trying to sell high level servers in a market they have never competed in. Relying on Wang for the service personel and DGN's Clarion storage systems. BTW, did anyone notice that DGN said results were weak due to poor demand for their Clarion storage systems ? I wonder if DELL would like to reconsider their newly minted storage agreement now having seen how popular Clarion is? Jim

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