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Technology Stocks : Intel Corporation (INTC)
INTC 35.40-0.4%10:41 AM EST
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To: John F. Dowd who wrote (79809)4/23/1999 2:17:00 PM
From: Mary Cluney  Read Replies (4) of 186894
 
John, >>>This is just another pilot of INTC to encourage others to enter this kind of business so that in the end more CPU's are sold.<<<

I don't think so. Intel doesn't have much more to prove in terms of selling MPU's. Intel is looking for more rapid top line revenue growth. They have an unparalleled track record in manufacturing, developing a world class R&D process, and managing a $30B a year business.

Developing data centers using Internet Protocol, the latest in communications equipment, and state-of-the-art (IA64?)servers should not be stretch.

If I were to start up a local rent-a-car business, a local regional bank, or a local pharmacy and/or grocery store why should I go out and reinvent the wheel. Why should I go out and hire people to develop and maintain a data center, when I can use one that is in existence.

Pretty much like I would go to the local Kinkos for producing my annual report rather than have my own reporduction facility.

It makes a lot of sense - but they have to overcome a lot of resistence from people who have a stake in developing and maintaining data centers for a living.

At least that is my current guess at what this business is all about.

Regards,

Mary
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