Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Harry Landsiedel who wrote (99191)	2/16/2000 3:38:00 AM
From: Amy J	Read Replies (2) \| Respond to of 186894

Hi Harry, Re: "they brought it out into the open, figuring being nice was not speaking the language SUNW could understand." Probably. It certainly preempts the issue. RE: "Dell got an order for 10,000 servers for Intel's server farms." Something doesn't seem right to me. Dell's products do not seem to be for the very high-end Server market (in fact, I don't recall seeing a Dell Server in an IT Enterprise HDQ, only Compaq, etc. however, I've seen them in workgroups). Second, 10,000 servers do not seem to be enough servers - I'm going to compare server farms to broadcast farms to illustrate that something might be wrong with this number: It evidently took broadcast.com about 3,500 pcs to broadcast a V/S show. That's 3 equivalent shows. That's tiny for a business division which reported they intend to spend at least $1B. Either the 10,000 number is incorrect/way too small, or Intel intends to buy more servers from Dell, or Intel has bought other types of servers in addition to Dell. RE: "innovation fits with the Dell approach" I don't think Dell really spends money on RND. RE: "This does not leave out CPQ, but it does challenge them on the price/performance issue doesn't it?" Yes, especially on the lower-end of the market. Re: "Again, I defer to your superior knowledge here." I wouldn't because a team (i.e. SI INTC thread) when working together to hash all this out, is generally superior to any one individual's contribution. i.e. debating is better than deferring. RE: "But doesn't SUNW's support for Itanium give Intel a big entre‚ into the enterprise?" I sort of thought Unix shipments decreased last year (off the top of my head, I seem to recall 19% down to 16%?), even though they are the sweet spot of the revenue curve. MS's unitshare is about 38% I believe. I perceive SUN more as an entre into non-traditional Enterprise markets. Microsoft is all over the place in the Enterprise markets, from the top to the bottom, from left to right, from sys to apps. If MS isn't doing a sys sale, then their doing an apps sale into the Enterprise. RE: "And wouldn't SUNW's weak support delay Intel's penetration into that space?" I think there's a strong perception that SUNW is the dotcom, however, I think MS is going to be pretty aggressive in shaking that perception (but yes, I would have preferred if Intel and Sun could have jointly targeted the market, from the perspective of an Intel shareholder). But you were talking about the traditional Enterprise market, which is where I perceive MS as pretty sure-footed (at least, well-positioned). I wonder if Sun wanted a chinese wall between IA-64 vendors and their customers? Regards, Amy J

To: Harry Landsiedel who wrote (99191)	2/16/2000 1:34:00 PM
From: rudedog	Read Replies (1) \| Respond to of 186894

Harry - re: This does not leave out CPQ, but it does challenge them on the price/performance issue doesn't it? I don't think this is a price-performance issue - CPQ's 1u rack servers are twice as dense as DELL's 2u product, with the same performance and price point. This has a lot more to do with the close linkage between Intel engineering and DELL products, and also probably a little bit of redress for the profusion, 820 and coppermine delays which hurt DELL in the market place. DELL is surely a more reliable partner in the hardware space than CPQ, which has its own ideas about the architecture for those "big hulking servers" Barrett refers to. Long term, having a largely captive OEM like DELL is just a safer business decision than opening the door to a partner who is also a competitor, like CPQ.