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

To: Jim McMannis who wrote (148616)	12/6/1999 5:28:00 PM
From: Walcalla	Respond to of 176387

Have not seen this posted yet. ...........................Dell Buys Into Emerging E-Business Channel By Kelly Gollobin & Steven Burke Computer Reseller News San Francisco 5:30 PM EST Fri., Dec. 03, 1999 Dell Computer Corp. is buying into the new E-business solution provider channel. Literally. The $24 billion computer company, which has been successful selling systems via the Internet, has a business-to-business E-commerce venture fund, Dell Ventures, that is investing millions of dollars in E-commerce solution providers. Dell's latest investment is Xuma, a San Francisco start-up officially launched this week. Xuma sells what it calls "pre-integrated" build-to-order applications for E-business. The company first delivers pre-packaged E-business solutions and then uses small teams of engineers to focus on customizing the systems to fit the business. "We're trying to leverage what Dell is doing and expand it to people building E-business solutions," said Xuma Chief Executive and co-founder Joe Cha. Xuma,named after a Chinese word meaning "charging horse",has raised $8-million in combined funds from Dell, as well as venture-capital firm Menlo Ventures, Menlo Park, Calif. The start-up battle-tested a set of pre-integrated core E-commerce technologies including electronic data interchange, tax calculations, shipping and credit-card fulfillment. Xuma is one of several business-to-business solution providers that has caught Dell's eye. Among the more than 15 companies that Dell Ventures has bet on include NaviSite Inc., a CMGI Inc. majority-owned E-commerce application service provider, in which Dell purchased a 4.9 percent stake in June; and Lante Corp., an E-business solution integrator that counts Dell Chairman and Chief Executive Michael Dell as one of its advisory board members. Dell is also an investor in Internet Capital Group Inc. Solution providers said the Dell cash has provided them not only with credibility when wooing customers but also a chance to partner with Dell on deals. "Dell was the leader with the initial model of how to quickly deliver systems and provide customer support to PC users," said Jay Seaton, vice president of marketing for NaviSite, which also received a 4.4 percent investment stake from Microsoft Corp. "Now they are looking at the next wave of staying on the forefront of how people acquire PCs, servers and storage equipment," he said. Both Dell, Round Rock, Texas, and Microsoft, Redmond, Wash., realize the way systems and software are being delivered radically is changing, Seaton said. "Everything is shifting to a hosted network delivery model," he said. "For them to be successful . . . their products need to be delivered and supported by a high-performance, high-availability infrastructure," Seaton said. Lante Chairman Mark Tebbe said the investments are part of Dell's move toward becoming more of a true business partner rather than just a hardware provider. "Dell has been doing this for a while with new service offerings and support," he said. "This is just a natural extension of what they have been doing for years." Dell Ventures, launched in April and now managed by former Dell treasurer Alex Smith, is moving quickly. On its Web site, Dell Ventures said the fund was "initiated for the purpose of partnering and endorsing companies that are vital to Dell's strategy." Dell Ventures is targeting companies in Web service, delivery and process, storage and enterprise, communications, and other technology investments that enhance sales opportunities. The Web site offers a direct submit form for companies looking for cash. "The people who get there first,the spoils they have to reap are so massive," said Jamie Lerner, Xuma chief technology officer and co-founder. "[It's] the difference between having a billion-dollar IPO [initial public offering] vs. being acquired for $10 [million] or $20 million." For more on Dell and E-solution partners, go to: www.crn.com/thisweek