Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: OLDTRADER who wrote (143101)	9/29/1999 3:53:00 AM
From: Alohal	Read Replies (1) \| Respond to of 176387

WBM and thread. Excellent article in Forbes on IBM and their strategy of selling their technology to Dell, Cisco EMC etc. Very interesting: forbes.com some of the better quotes: Enjoy! Alohal " Dell posted profit growth of 55% last year as IBM's PC business ran up $1 billion in losses. Yet IBM will sell Dell up to $16 billion in parts over seven years, giving Dell access to IBM's patent library, chip designers and software engineers. Lately some people in IBM's PC group fret that IBM may end up providing technical support for Dell's computers, removing the one feature--service--that differentiates IBM's boxes from Dell's. "This is a huge coup for Dell--IBM is finally giving in and becoming a supplier to them," says 20-year IBMer Joseph Formichelli, who left last year to run Toshiba's U.S. unit. It must worry people inside IBM, he says: "You've grown up hating your mortal enemy. Now your company is supplying them with artillery shells." Some IBMers admit to it. When the Dell deal came, David Thomas, who runs IBM's PC unit, had to prop up the troops, who were trying to recover from their worst year ever. "The feeling was, 'Why now?'" he says. It promises big bucks, but it also will make it ever harder for IBM's product divisions to gain any ground. "It's what every dying company does in its final moments," scoffs William F. Zachmann, president of Canopus Research in Duxbury, Mass. "Once your businesses start to fail, you try to make money selling pieces."