Michelle -
Dell is doing much better against CPQ's PC business (where they are doing about 2/3 of CPQ's volume, higher ASP, and growing at more than twice CPQ's rate) than in enterprise, even if we just look at CPQ's 'classic' business (i.e. ignoring Tandem and DEC). In that segment of the enterprise business (which BTW represents only 30% of CPQ's large system sales), CPQ has higher ASPs and nearly 3 times Dell's volume. Don't get confused by simplistic analysis of this space. And don't underestimate the leverage potential of the very large systems, which typically pull a lot of related smaller servers.
Dell may appear to be out-growing CPQ in 'standard' servers, but only slightly, only if we ignore the 'non-traditional' CPQ server and workstation lines, and only if we ignore services.
CPQ also has a much better relationship with MSFT. If you are not aware of the field conflicts (which are compensation based) between the DELL and MSFT fields, you need to do a little more homework. Don't look to MSFT to leverage Dell into the enterprise, it won't happen. MSFT needs those 25,000 DEC service and design people at least as much as CPQ needs them, that's what the Alliance for Enterprise Computing agreement was all about, which granted CPQ 'prime integrator' status for MSFT. |
