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Technology Stocks : Dell Technologies Inc.

DELL 133.20

+5.7%

Nov 26 3:59 PM EST

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To: Chuzzlewit who wrote (60342)	8/23/1998 5:34:00 PM
From: jhg_in_kc	Read Replies (1) of 176387

IS CISCO ALSO USING THE DELL MODEL, BEING DIRECT? I came across this post on the Cisco thread: "The Cisco Connection: Network Giant Has Seen the Future -- and Is Poised to Piece It Together" Cisco gives its suppliers intricate orders on how to build its components, and then computerized scripts for testing those parts. "We employ five people externally for every one person inside manufacturing," The "Dell" Model! This is what is driving the 65+% gross margins. This combined with Cisco's "one stop shopping", is what is keeping them ahead of the competition. This article at washingtonpost.com) Also Cisco has "strategic alliances" with big companies such as Microsoft Corp., Intel Corp. and Compaq Computer Corp., which Cisco counts on to provide the technologies that it either can't or won't create on its own. Cisco believes that such deals should promise both it and the partner $500 million to $1 billion in revenue that they wouldn't have won on their own. I wonder if you have any thoughts comparing and contrasting Ciseo and Dell as to efficiencies and vision and growth prospects. I remember you said John Chambers ranked up there with Michael Dell in terms of vision. Also if you or anyone knows of a link or article which explains CLEARLY what Cisco does, I'd appreciate it. EveRytime I try to read up on thier products, I fall asleep, it's so boring. jhg

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