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To: Uncle Frank who wrote (6130)	9/9/1999 11:43:00 AM
From: Teflon	Read Replies (1) \| Respond to of 54805

Looks like Dell is focused on expanding its Storage Products (SAN Segment) capabilities: Dell Makes Data Storage Deal By Brian Graney (TMF Panic) Forgoing the internal growth route for the first time in its history, direct PC marketer Dell Computer (Nasdaq: DELL) announced late yesterday an acquisition, of all things. The target company is privately held ConvergeNet Technologies, a two-year-old maker of data storage technologies. Dell agreed to pay 6.9 million shares, or roughly $340 million, for the company and plans to take a $0.05 to $0.07 per share charge for in-process R&D once the deal closes. While the fact that Dell is making an acquisition at all is somewhat of a surprise in and of itself, the rationale behind the deal is even more intriguing. Instead of improving upon the amazing manufacturing prowess that has made Dell what it is today, the company is moving in a different direction and is acquiring technologies that it feels will give it a competitive advantage in the growing small- to medium-sized business storage market. ConvergeNet's storage area network (SAN) technology will allow Dell's PowerVault storage systems and also rival systems to connect to servers running any of a number of operating systems, from UNIX to Solaris to Windows NT to Linux. "Our customers want storage technology from Dell that connects with any open-standards server," said Michael Lambert, senior vice president of Dell's Enterprise Systems Group. "The technology we acquire with ConvergeNet will help make that happen." While having a technological edge over its data storage rivals could potentially boost Dell's margins down the road as the storage market grows in size, Dell is likely more interested in the future revenues and earnings that the addition of ConvergeNet could bring to the table. With its long-standing focus on the business market, the company will be able to offer its main customers attractive, complementary storage products to go along with their Dell server systems. The deal might also help promote a bit of technological "lock-down" for Dell in an enterprise server and data storage market that is sure to be full of competitors in the years ahead. Any thoughts DownSouth? Teflon

To: Uncle Frank who wrote (6130)	9/9/1999 11:45:00 AM
From: MulhollandDrive	Read Replies (1) \| Respond to of 54805

Thanks Frank, I was actually trying to frame a rhetorical question. I would be interested in what JRH knows about the new SAP software and why specifically it was termed an "Ariba killer". <edit> I just found this on the SAP thread, I wonder if the last paragraph is hinting at the Ariba killer.... >>By Mike Tarsala, CBS MarketWatch Last Update: 8:00 PM ET Sep 8, 1999 Tech Report Silicon Stocks Internet companies go with SAP Germany-based SAP AG (SAP: news, msgs) rose 2 3/8 to 37 5/8 on news the company will provide financial software to Barnesandnoble.com and Boston, Mass.-based Streamline.com The companies will use SAP's software to integrate front-office desktop computers with back-end databases and server computers, SAP reported in a statement. Analysts suspect SAP will introduce new software next week at its annual customer conference in Philadelphia. bp