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Technology Stocks : Dell Technologies Inc.

DELL 133.35

+0.1%

Nov 28 9:30 AM EST

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To: K. M. Strickler who wrote (49607)	7/2/1998 1:40:00 PM
From: rudedog	Read Replies (1) of 176387

Ken - We are not talking about fixing things that break - that class of service is indeed less and less important. The high end support is a range of services related to maximizing the value of IT investments - an example is DEC's turnkey exchange installations, a service that netted them more than half of all exchange seats ever installed. The service revenue was much larger than the revenue MSFT made on the exchange sales. current analysis of IT expense in fortune 500 companies shows ALL initial capital spending (i.e. computers and software to run them) at about 12% of total IT spending, outside support services of various types at about 35%. I actually have a lot of the detail on this but it would be slow going and probably OT for most on this thread. The point is that although service and support costs have been a target for years now, there has not been much change in the overall spending patterns. What seems to be happening is that more and more ambitious projects are being undertaken with those dollars.

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