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Technology Stocks : Dell Technologies Inc.

DELL 122.46

-8.5%

Nov 17 3:59 PM EST

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To: Mohan Marette who wrote (81241)	11/18/1998 11:10:00 PM
From: rudedog	Read Replies (1) of 176387

Mohan - I don't think this plays too well with the big channel partners, it is a VAR program. The little guys never had price protection or stock adjustments or any of that nice stuff, so they don't expect it. The big guys are clearly going to go through some withdrawal - have been doing so since the protection got cut from the 90-180 days of 1997 to the week or so today. But nobody is doing that any more - HP and IBM have cranked down too. Maybe the VARs give up white boxes to CPQ and the big guys give up CPQ for their own white boxes. Whatever happens there it will be interesting. Dell is obviously better off to be well clear of that mess. My point in the earlier post is not that this set of programs has all of the answers - but it is not a stupid program, it is a well crafted initiative to go after a huge incremental market that none of the majors has done well in. Even GTW has no good programs for the VARs. If CPQ can pull this off they can afford to take a big hit in other markets and still get nice growth since the opportunity is so big. BTW at the end of the day my bet is still that Dell wins the corporate desktop, eventually even down into these small customers. But you can see how the battle is shaping up - Dell going direct to the customer will be fighting both CPQ and the small VARs in this space unless they get a compelling VAR program of their own. And I see IBM and HP just getting killed here. Another casualty in the battle will probably be the big channel guys. But short term they will link up with IBM and HP, and also do their own things. That will be a tough place to be for the next few years.

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