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Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%Nov 14 9:30 AM EST

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To: Achoo who wrote (51329)7/15/1998 4:00:00 PM
From: Jim Patterson  Read Replies (3) of 176387
 
RE: I don't understand how IBM CPQ HWP could keep an operation going in which they lose money on pc's but make enough to cover it on services and support. Why wouldn't someone who offers services and support only be able to do so at a cut rate, without having to offset the drag of an unprofitable manufacturing operation? Or perhaps partner with DELL, GTW, or MUEI and offer better total cost of ownership pricing

If you need 10,000 terminals and someone to support and make the thing work, Which would you rather deal with, One company or
5 diferent companies.

The PC end is not loosing money. It is breaking even, barely profitable.
The idea is to get the service deal and give the hardware away.
Think cell phone.

As for partnering,
DELL, GTW, and MUIE can not provide the very highen computing solutions that IBM HWP and CPQ can.

Jim
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