Don't ever underestimate DELL and its determination to become a MAJOR player in a new market (like the storage arena). IMO, this will benefit IBM (their new alliance partner) as well as NTAP (a strategic supplier for the storage field). EMC is still an outstanding storage company. Yet, in the next year EMC will experience more competition than they have ever had before.
Check out the last half of this post I just put on the DELL board -- it contains new analyst insights on how IBM may help DELL ramp up in the Storage Market....
<< To: PAL (107939 )
From: stockman_scott Saturday, Mar 6 1999 11:33PM ET
Reply # of 107946
<<Who do you trust more: Michael, a freshman dropout from UT with a 16 years experience, piloting the fastest growing company or Dan Niles a theoretical overeducated Stanford graduate?>>
Paul: That's an EASY question to answer. I would TRUST Michael Dell and his team any day. If I was going to consider an analyst's comments, I would look at their track record first.
Right now I am looking at a new Gerard Klauer Mattison report. The analyst, Lou Mazzacchelli, has been on target with his assessment of DELL for quite a while now. Here are highlights of what he had to say on Friday, March 5th:
<<DELL Computer (Buy Rating)
EPS Targets 1/99A 1/00E 1/01E
........$1.05 .....$1.50 .....$2.06
OEM Pact with IBM, Strategic Opportunities Remain
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-We believe that today's announcement is a positive for DELL long-term.
-Broad $16B, 7-10 year OEM agreement includes storage devices, microelectronics, networking and display technologies. We believe DELL will make immediate use of IBM disk drives, memory components and flat-panel displays. This could provide DELL with a technology lead over its competition.
-DELL's best strategic opportunities with IBM remain unrealized. These include IBM becoming DELL's primary services partner, and DELL manufacturing PCs for IBM. The recent agreement does not preclude either scenario.
-DELL's OEM deal with IBM has the potential to increase its storage business growth rate by providing leading-edge technology that is more likely to be compatible with IBM Enterprise solutions than competing offerings. This is a positive for DELL and would be enhanced by a broad-reaching services agreement between DELL and IBM (which would remove what we believe to be a major strategic impediment to effective long-term competition with Compaq in enterprise accounts).>>
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I LOVE those comments about the fast growing storage market.!!! DELL is seeking to become a MAJOR player in this lucrative field. Just check out Tom Meredith's quote in the latest BusinessWeek cover story on EMC ...
IMHO, DELL continues to prove that they are the next DELL.
Regards,
Scott |
