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

To: J. D. Main who wrote (154860)	3/10/2000 11:55:00 PM
From: calgal	Read Replies (3) \| Respond to of 176387

J.D., Re: "Bloomberg put out the story at 4:46 PM. No can copy and paste to SI. Could someone please find it and bring it to the Thread." Here it is. I read this earlier. Dell is looking "beyond the box"!:)Leigh quote.bloomberg.com Dell Seen Selling Internet Servers for Small Firms (Update1) By Loren Steffy (Updates with closing stock price in the sixth paragraph.) Round Rock, Texas, March 10 (Bloomberg) -- Dell Computer Corp., the biggest direct-seller of personal computers, will introduce a new line of servers as early as this month aimed at small businesses that use the Internet, analysts said. Known as ``appliance servers,' the machines power Web sites and manage Internet traffic, yet are cheaper and easier to set up than conventional servers now sold by companies such as Sun Microsystems Inc. and Compaq Computer Corp. Dell is targeting more profitable areas of the computer market to try to offset slowing PC sales. In January, Dell said sales this year would rise about 30 percent each quarter from a year earlier. From 1996 through 1998, when Dell was the best-performing stock in the Standard & Poor's 500 Index, sales rose 50 percent or more each quarter. ``You are going to see them coming out with some new products,' said Dan Niles, an analyst with Robertson Stephens & Co., who rates Dell a ``buy.' ``Dell has seen its (server)business starting to come back in February after a weak January.' Dell's fiscal fourth-quarter profit was little changed as customers delayed purchases because of concerns about problems related to the year 2000 date change. Dell rose 13/16 to 51 1/4 in trading of 77.7 million shares, making Dell the most active in U.S. markets. The stock is little changed this year. Sales of appliance servers and a rebound in computer demand amid easing concerns about the date change could push the price of Dell shares to a record 60 by early April, Niles said. Servers Appliance servers are designed to perform one function. They come with software that lets small businesses with little expertise set up Web sites or handle transactions on the Internet. ``It is a growing market and one that we are looking at,' said Dell spokesman Bruce Anderson. He declined to comment on when the company would unveil the new line. Ashok Kumar, an analyst with U.S. Bancorp Piper Jaffray, said he expects Dell will unveil the new servers by month's end. Dell will be the first major PC maker to target the appliance server market, competing with companies such as Cobalt Networks Inc. Analysts said they expect other PC markers eventually willstart selling the servers as well. Dell's new machines will run on Linux or Microsoft Corp.'s Windows 2000 operating systems and sell for $3,000 or less, which is about half the price of other appliance servers, said Kumar, ho rates Dell a ``strong buy.' Dell will probably sell $5 billion of the servers annually by 2003, he said. The company has been selling general-purpose servers since 1996. They have a range of uses, from running internal computer systems to designing Web sites for large corporations. Don Young, an analyst with PaineWebber Inc., said servers will be the biggest growth area for Dell during the next three years. He raised his rating on Dell today to a ``buy' from an ``attractive.'