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

To: arthur pritchard who wrote (146365)	11/3/1999 1:24:00 PM
From: Moose	Read Replies (2) \| Respond to of 176387

you mentioned INTC to make your point, and this confused me intel.com; Intel is pouring money into "online services" which means they need to buy gobs of servers. I agree that Dell's competition is Sun. Currently, it looks like Sun's h/w composes something close to 60% of the servers in the online service (hosting) world. That leaves 40% for Dell, Ibm, Cpq, and others to fight for. I'd like to see Dell make a contract w/EXDS, INTC, MFNX, and QWST just to name the ones I know of. I don't mean to snuff at Dell's progress at international expansion, I just don't think that will boost growth from 3x% back to 5x%. Sun is the enemy... but keep an eye on GTW too;-) -Moose

To: arthur pritchard who wrote (146365)	11/4/1999 1:23:00 AM
From: Mani1	Read Replies (1) \| Respond to of 176387

Arthur Re "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 think you hit the nail right on the head. In the long run, what is Dell's market focus? Is it consumer PC to be used mainly for entertainment, finance management and Internet, or is it for the corporate market that more and more relies on connectivity? Perhaps it is both. In the consumer market, which Dell only recently attacking, it will be a tough battle. Competing in an increasingly commodity market with GTW and CPQ who have physical presence will be hard and probably very low margins. I am well aware of Dell's recent growth in this sector but it was from a small base. They have their hands full with GTW and CPQ. In the more lucrative corporate market that is currently their strength, there might be some changes ahead. Dell simply does not have the technology to shape and evolve this market. Success of Dell in this market will have to come along side with Intel and Microsoft. If Intel and Microsoft lose this battle to Sun, IBM and oracle, Dell will also fall. If Sun's concept of, centralize client administration and management with thin client solution catches on (it is off to an extremely strong start), Dell is mostly done in the corporate market. It has no way of responding since it can not start making Sun boxes. Sun is vertically integrated company who makes the CPU all the way to the software, who can try to define and shape the corporate computing market. Dell is an incredibly efficient box maker, if the box is no longer needed in the form Dell makes it, Dell is in trouble since it does not know how to make the box differently. Do you think corporate computing market will change? If so do you think Dell has the technology to evolve and adapt to this change? Mani