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

To: kemble s. matter who wrote (149463)	12/19/1999 4:00:00 PM
From: Patrick E.McDaniel	Read Replies (3) \| Respond to of 176387

Kemble, Austrailia is buzzing over Dell/IBM. Further IBM, Dell deals tipped By Emma Connors, Senior IT writer The $US22 billion ($34 billion) worth of business signed between IBM Corp and Dell Computer Corp this year could be followed by further co-operative deals in the personal computer business following a new appointment to the Dell board of directors. Last week Dell Computer Corp announced that Dr James Vanderslice, formerly senior vice-president at IBM, had joined Dell as vice-chairman, reporting to the chairman and chief executive officer, Mr Michael Dell. The appointment was described as a blow for IBM by some analysts, who regarded Dr Vanderslice, a 30-year IBM veteran, as a key point man for IBM's chairman and chief executive, Mr Louis Gerstner. In the mid-1990s Dr Vanderslice managed to turn around IBM's ailing disk storage business. Earlier this year he helped mastermind the cross-licensing agreement which will see Dell Computer source $US16 billion ($25billion) worth of IBM storage products, semiconductors, networking equipment and display technology during the next seven years. In September the companies cemented their alliance with a services-based deal that could be worth as much as $US6 billion over seven years. The agreement will see IBM Global Services supply a range of installation and warranty services to Dell customers. In Australia the deal is likely to see some of the 6,000 employees of the IBM/Lend Lease/Telstra joint venture, IBM GSA, doing work for Dell's corporate customers. Those who have observed Dr Vanderslice's close partnership with IBM chairman Mr Gerstner believe the former's move to Compaq Computer is likely to enhance the relationship between the companies. Dell Computer has advanced its hold on the personal computer market this year, and looks set to claim the No1 spot from Compaq Computer. IBM Corp, which once owned the category, is now rated third. IBM's PC business has not been profitable for the past four years. Last year the division lost almost $US1 billion and so far this year the business has cost the company $US311 million. IBM's recently announced decision to pull its PCs from US stores and sell only on the internet has fuelled speculation the company will choose to get out the PC business altogether in order to concentrate on services, software and more profitable hardware products. However, IBM has so far refuted any such suggestions.