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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: D.J.Smyth who wrote (137215)	7/21/1999 12:41:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Darrell, I view the emergence of thin clients and ASPs as slicing into the medium to small business market -- not the largest corporate users. My non-technical understanding is that there are many cost advantages to this approach for smaller companies. I also understand that the upgrade cycle is significantly lengthened for the dumb box. Wouldn't you agree that this is true it poses a problem for Dell insofar as the total market for fully-functioned PCs on the desk-top contracts (or growth slows substantially)? Citrix systems is a software company which is involved in the ASP market, and is growing at a 75% or so per annum rate. Observers agree that this approach has yet to be accepted by many IT managers, but it seems clear that this is an idea whose time is coming. In the link I posted earlier it was estimated that the ASP market will reach $64 BB per annum in two years. I am in no position to discuss technical feasibility of thin client technology, but in looking at the results posted by companies like Citrix I think that the threat is real. And interestingly enough, I think that the minority stake in Com2001 may be Dell's opening salvo in an attempt to capture a good portion of the hardware end of this market. TTFN, CTC