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

To: Moose who wrote (146342)	11/3/1999 7:38:00 AM
From: arthur pritchard	Read Replies (2) \| Respond to of 176387

moose:<internet services companies> you mentioned INTC to make your point, and this confused me (but I do agree with your point). Would you elaborate on your concept about internet services companies, in particular? btw no way is IBM going to take a 30% equity position in Dell at this time. Both companies know what they need to be doing next, and have very separate next steps. I am not at all against Dell; just would prefer them not to have IBM as a 30% equity partner at this time. Kemble, I know this is your dream, but I don't think your contacts are at all close to the ibm executve office. Dell will do extremely well long run, just doing what they do. The stock NO LONGER NEEDS TO EXPLODE. I'd be much more concerned with how they compete with sun in the server market. This, to me, is their strategic weakness, at the moment. I live within Sun territory, and run into their programmers. I am always impressed with their focus and determination. And, interestingly, they use Goldman Sachs as much as Dell does. I'd actually be much more interested in stronger ties between those two. They have both had to be scrappy, to get where they are. And Goldman Sachs has the corner on almost any Internet ipo they want a real interest in. Out here, the Goldman Sachs and the venture capital types, are at the very center of some of the best strategic thinking. And they are not interested in whether Dell obtains IBM as an equity investor.

To: Moose who wrote (146342)	11/3/1999 7:59:00 AM
From: Sig	Read Replies (2) \| Respond to of 176387

<<< Nonetheless, DELL is going to have to start landing BIG contracts with the Internet services companies (INTC, EXDS, etc.) in order to continue the kind of growth you and I are used to.>>> Moose: 1. One of the last Dell contracts was with a company that can recommend or provide computers to 15 States. dell.com (in a few years we may read about Dell providing computers to schools in 15 Chinese provinces) 2. Dell has moved into some bigger stuff, servers using 8 xeon processors which cost about $1900 per Cpu when they first came out. That business segment is growing at about 100%/yr 3. Dells business/government sales are not a one-time only thing. As part of Dells agreement to be the low-cost provider Dell will up-date or replace those computers as systems become obsolete or newer capabilities come on the market. An example would be the recent capability to have computers talk to each other regardless of which OS or software the 'other guy' is using. Installing the new board or software required would help explain why Dell services is growing at a 100% rate. One of the new buildings in Tennessee is devoted to handling refurbishment or updating of those systems . 4. Peripheral sales thru Gigabuys or the original Dell site will continue to grow. I have used about 5 cartridges so far in an HWP printer purchased last year in the Dell factory outlet- thats about $100 worth. With Dell achieving a 55 to 60% win rate on new contract bids, I believe Dell growth is still limited more by manpower and manufacturing space ( and temporarily dram and LCD shortages) than by lack of customers. 5. Last year my son was sent to Brazil to help install HWP and Dell servers. The import duties ran over 100% which made some of them cost up to $100K with months of delay in customs This should help explain why Dell is building that plant in Rio Grande do Sul. Instead of listening to doomsday analysts, try to keep in mind the fact that Dell has doubled the number of employees in Ireland last year, sales in China are up by 600%, they are adding 50 (?)people/day to the Xiamen facility, they are building millions of square feet of facilities on at least 3 square miles of property in Austin, in Tennessee, in Brazil. Summary: The vision is still alive. The market will control Dells growth rate, not a prediction by many that Dell will grow at only 35%/ year from now on. ( feel free to correct any inadvertent mis-statements here) Regards Sig