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

To: GVTucker who wrote (147689)	11/19/1999 7:44:00 AM
From: rudedog	Respond to of 176387

GV - DELL has had spectacular gains in the Small-medium business segment, going from essentially nowhere in 1997 to more than 12% of that market last quarter. They are now #2 behind CPQ, who has just over 13%. But it is incorrect to say that DELL is "selling at retail" IMO - they have used a number of innovative programs to drive that market, including an "agent model" which gives small VARs a referral fee for routing their customers to DELL, provides custom configuration for those small integrators, and even leasing programs which eliminate any carrying costs for the little guys. This business has been primarily at the expense of "white box". DELL's model here was the result of a careful analysis of the economics of that space. The small integrators typically do "white box" assembly at close to cost (less than 5% margins) in order to get the integration and configuration business. By providing free custom configuration and also eliminating carrying costs, the DELL programs effectively give those little guys another 10 points of margin. DELL has been very effective in educating that market on the value of their programs, as many of those vendors had not done any deep analysis of their own financials. So in short I think that Carly's representation is a big stretch on the facts.

To: GVTucker who wrote (147689)	11/19/1999 8:02:00 AM
From: Lee	Read Replies (1) \| Respond to of 176387

Hi GV,..Re:. DELL is now selling 30% of revenues through channel partners Can't find a specific link but did read some months ago about a partnership via conventional means. However, did find in the most recent quarterly earnings report that 40% of the Asia Pacific sales are done on-line which leaves the majority of sales done by some other method. Forty percent of Dell Asia-Pacific sales were conducted online. dell.com Also, now that they are targeting the consumer market, it stands to reason that alternate methods would have to be employed to reach more prospects. Cheers, Lee