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

To: D. Swiss who wrote (143155)	9/29/1999 4:02:00 PM
From: rudedog	Respond to of 176387

Drew - The potential margins in the service business exceed 60%. DELL could make that on their own service business and retain customer control. The OEM box business is about a 10% margin game. They could make 15% or 20% or some other number (I would hope they would at least make the same margin as their average around 23%) and still claim they make more than the OEM box business. Still leaves A LOT of money for IBM. The previous info I had suggested that DELL was at better than $1B run rate in services. I don't know how much of that was direct, and how much was with Unisys and Wang. But clearly if they intend to grow that faster than their base business, and they are trading 60+ percent for 20's margins on billions of dollars of revenue, they are leaving substantial money on the table.