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Technology Stocks : Dell Technologies Inc.

DELL 122.55

+4.4%

Nov 21 9:30 AM EST

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To: SecularBull who wrote (57059)	8/7/1998 2:10:00 PM
From: rudedog	Read Replies (1) of 176387

LoD - why do you think DELL's direct model will impair their ability to move into the non-desktop enterprise business I don't think that at all. The direct model is fine for enterprise business, in fact probably better than the CPQ model if Dell can manage to solve the problem of meeting volume demand for very large orders (which they are aware of and working to control). The problem as I see it is that for larger enterprise sales, customers require pre-sales engineering, related support offerings, high level services (such as large turnkey installation and service level agreements) which require a big infrastructure. This will change Dell's cost base, cash management model, ROIC, and ability to control margin short term. I think it is a tough call to say whether the increased business justifies the risk, when there are so many areas that Dell can move into which do not have those risks.

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