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Technology Stocks : Dell Technologies Inc.

DELL 135.97

+2.9%

3:59 PM EST

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To: Skeeter Bug who wrote (95526)	2/6/1999 5:32:00 PM
From: BGR	Read Replies (1) of 176387

Skeeter Bug, That is a very interesting definition of demand strength that you are coming up with, that demand has to be strong enough to support revenue growth. Usually, that is not the way demand is measured and unit consumption is the metric used. Price and revenue are two very different things and one confuses them at their own peril when analyzing the relationships that these two distinct things may have with demand in a deflationary environment. To repeat my point, while it is true that lots of Y2K dollars were spent on s/w in 1998, falling ASPs (independent of Y2K) had way more influence on YOY h/w revenue growth than Y2K dollar allocation. Besides, you should make up your mind about 1998 h/w budget allocations. If they resulted in lowering of revenues, they will no longer be a factor in 1999 as the Y2K s/w problem has been taken care of and h/w budgets should increase; therefore the market being forward looking should be strong. If they didn't, then Y2K didn't result in weakening h/w revenues. Make your choice, but don't try to make it look bleak either way. While not denying the strong strain of optimism that I possess, regarding Y2K I am just being a pragmatist as I work in the software industry and have seen closely how it is being dealt with. I am certain that systematic Y2K problems are no longer an issue for enterprise systems (the area I am most familiar with and the one that has been getting a lot of headline wrt Y2K for the past few years). Do you have any data to back up your concerns? Thank you! -Apratim.

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