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Technology Stocks : Compaq

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To: Jack T. Pearson who wrote (25924)5/9/1998 7:24:00 AM
From: rudedog  Read Replies (1) of 97611
 
Jack -
CPQ and DEC internal requirements accounted for about 70% of the DEC service business, Dell was not a big contract for DEC. CPQ already considered that most of the outside contracts would go away, in fact is counting on it since CPQ plans on using all of that capacity internally.
BTW I don't think CPQ is planning any layoffs in the service organization, in fact is planning on expanding that group, possibly by further acquisition. That was covered in the press and on this thread about a month ago in remarks by John Rando, head of the DEC Service business.
I agree that Dell will probably not buy a service provider but only because they are not really doing anything to go after the high end enterprise business, they just need break-fix for their PC business.
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