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

To: calgal who wrote (154872)	3/11/2000 12:23:00 AM
From: Sig	Read Replies (1) \| Respond to of 176387

Hi Leigh: Analysts remind me of hecklers who stand around a stalled car (a Ford)G)? and proclaim it will never run. As soon as the poor guy pushing it gets the engine turning over, they all run around to the back and pretend they helped to push it too. Here is a brief audio about the new servers but nothing in addition to your report, biz.yahoo.com Sig

To: calgal who wrote (154872)	3/11/2000 3:20:00 AM
From: rudedog	Respond to of 176387

leigh - re: Out of the box... the appliance server category first emerged in 1997. CPQ fielded a pair of products in 1998 - one does web caching, one is a true small business "server in a box". Those products were around $1,300 when introduced... the price has risen over the last year to about $1.500. see www1.compaq.com IBM and HP followed about 6 months after the CPQ introduction with similar products. Once the idea caught hold, Intel announced about 6 months ago that they were packaging the technology to make this available broadly to OEMs - both with Linux and Windows NT as base OS. Several companies including DELL endorsed the Intel initiative. This current product is the DELL flavor of the Intel appliance package. So here we are again with an entry into an established market by a fast follower using leveraged Intel engineering and packaging, but somehow they get people to say things like Dell will be the first major PC maker to target the appliance server market - despite CPQ, IBM and HP appliance products which have been on the market for more than a year. The only possible interpretation is that these guys no longer consider CPQ, IBM and HP to be PC companies... Kumar is quoted as saying 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 but what he meant to say, or should have said, is that DELL's offering is about TWICE the price of other offerings, unless 3000 is half of 1500 in some kind of new math. Another piece of data which concerns me, especially given my notion that DELL will be under pressure in both ASP and margin on desktops and will need to grow the enterprise business even more aggressively, is the following, posted on Raging Bull: CPQ GAINS SERVER MARKET SHARE CPQ gained 2 Points in Server Market Share according to the IDC survey for 4th Quarter 1999. Compaq now has over 37% of the Intel Server Market Share... More than the next two competitors combined. Compaq rose 2 points, from 35.4% to 37.4% Dell dropped a bit, from 25.7% to 25.3% HP dropped a bit, from 11% to 10.8% IBM plummeted from 11% to 7.1% I have not yet gone back to the source but if this is true, then DELL needs to pay more attention to enterprise and less to being the PC king... or the rest of my pessimistic scenario might come to pass.