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Technology Stocks : Compaq

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To: hlpinout who wrote (58314)4/17/1999 12:53:00 PM
From: rudedog  Read Replies (2) of 97611
 
hio -
DELL has nothing like the neoserver, and will not be able to hit this product segment for at least 6 months, since they are dependent on Intel's development, announced at WINHEC, of a 3Q product. This review is not reflective of the intended market for this product category. This is not a competitor for a general purpose server. It is an "appliance", designed to be used like a VCR or microwave oven. No muss, no fuss installation, a very simple service model, and everything you need is in the box. CPQ offers complete installation including network for $100 if purchased with the product. This reviewer sounds like he would have benefited from such hand holding.

The reviewer apparently did not understand that this system provides base server capability, proxy server for a complete small business, and network infrastructure all in one box. The equivalent package using DELL components is more than twice as much money, with nothing like the same ease of use or simple support model.

He complains about the limited disk space. True, many laptops now come with more storage. But the primary use for that big storage on client machines is to hold the ever-larger applications programs and personal storage that users demand today. Market research done by IDC and others shows that shared storage in a small business environment is on average less than 3GB and that 80% of shared storage use is less than 5GB in companies with less than 25 users.

The proof is in the pudding. At the innovate conference this week, I spoke with one of the people involved with this product. He told me that the product was "flying off the shelves" and that sales were more than three times the estimated sales. He said it is one of the most successful launches of any CPQ product ever and that CPQ is scrambling to ramp production to meet demand.
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