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Technology Stocks : Dell Technologies Inc.

DELL 113.80

-3.9%

10:32 AM EST

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To: Chuzzlewit who wrote (117056)	4/13/1999 2:57:00 PM
From: David Harker	Read Replies (2) of 176388

I agree overall, but I doubt there is a special internal deal between PC group and component group. Each part of IBM must annually present business case justifying their requested development budget. They may get more, they may get less, depending on whether the top brass thinks they will make money w/ that allocation of capital. My software project is relatively small in IBM (several hundred people) but we have to do the same process. It's a bit like renewing your annual "venture capital" w/ those who funded you - and I'm sure it's a tough process (there is some conjecture above, I've never been in these meetings). So, the PC group is toast if they don't perform financially, unless as some have posted here, IBM decides there is validity in keeping them around (the "loss leader" idea) - I've got no comment or clue on that.

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