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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: rudedog who wrote (29229)	3/21/2000 3:14:00 PM
From: A.L. Reagan	Read Replies (1) \| Respond to of 64865

R.D.: From Bloomberg re: Compaq Server Marketing. Your reaction? Struck me like the loser kid in elementary school who tries to buy his friends. <g> (I realize vendor financing has its place.) Maybe some of the "friends" are dotcoms Barron's thinks are running out of cash. Technology News Tue, 21 Mar 2000, 2:49pm EST Compaq Computer Earmarks $1 Billion to Boost Internet Server Business By Loren Steffy Compaq Earmarks $1 Billion for Web-Server Business (Update1) Houston, March 21 (Bloomberg) -- Compaq Computer Corp., the world's biggest maker of personal computers, has earmarked more than $1 billion to provide financing and services for companies that buy its equipment to run Internet sites. The Houston-based company during the next few months also will unveil a series of new products aimed at companies that do business on line. Compaq estimates the market for servers and storage devices will top $16 billion in three years. ``It's an absolutely explosive market,' Compaq Chief Executive Michael Capellas said. Compaq and other PC makers are targeting sales of servers, the powerful machines that run computer networks and Internet sites, to make up for slowing desktop PC sales. Compaq already is the biggest seller of servers that run Microsoft Corp.'s Windows operating system. Compaq said it has set aside $600 million to provide financing for companies that want to set up new machines or convert existing equipment. It has designated $400 million more for investments in Internet companies, as well as $150 million to be used for marketing. Analysts expect Compaq rival Dell Computer Corp. as early as this month to introduce a new line of servers aimed at small-business Internet users. Known as appliance servers, these machines power Web sites and manage Internet traffic, yet are cheaper and easier to set up than conventional servers. Capellas said his company also will move into the appliance server market in the next few months. Meantime, the company still is promoting its machines to larger companies, such as Cable & Wireless Plc, the No. 2 U.K. phone company. ``We want to target all sizes of customers,' he said. ---------------------------------------------------- I like the $16 billion market size estimate! (Presume its US only.)