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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (3163)	6/26/1999 1:55:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 54805

Mike, if you go back to the original post of yours, it says: The company is in Frank's G&K portfolio. It's the long established gorilla of mainframes and has a shot at being the king of services and e-commerce. You said e-commerce, not storage. OK, services: IBM said last Q or the one before, that, for the first time, software and services were > hardware in revenue. I think that was the statement. So, with a little math and some assumptions, I think the services part is > the software part. So, services is at least 25%, of what, 80 billion, say 20 billion. I don't think any other company in the world is half that in service revenue. So, they should be a king there. In e-commerce, who knows. I posted an article on the Intel thread that described how Fortune 100, etc. companies were turning to IBM for server farms, because IBM is years ahead of anyone else in the combination of hardware, software, services, and a big key, RAS (reliability, availability and serviceability). System 390 is the heart of all that. May be hard for some people to admit, but Gerstner has turned IBM around. They are no longer an aircraft carrier that might take a long, long time to change course. Question is, has their stock gotten ahead of itself (love that expression, NOT). Tony