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: kemble s. matter who wrote (144549)	10/13/1999 11:43:00 PM
From: rudedog	Read Replies (2) \| Respond to of 176387

Kemble - I'm very confused by your post. I regarded MSD's comments about service as more of an advisory, almost a warning. MSD just said DELL is not going into the service business - It is not core DELL business. That means someone else will make the profit on DELL's service revenue - most probably IBM. If service grows to 50% of DELL's revenue, this has the effect of reducing overall profit, although it really does not affect the core business - it just overstates the revenue for that core business by 2X. Kind of a 50% tax by IBM. Likewise the data storage plan, which is pretty broken at the moment. Like I say, very confused. You took the two things I see as failures of execution (not necessarily DELL's fault with the EMC purchase of DG, but failures none the less) and talk about how great they are? These are two busted areas, one of which DELL said publicly they have no intention of fixing - they are abdicating the revenue to IBM or some other service partner. They are working to rebuild the storage plan but have not come out with a convincing get well plan yet.