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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: Jules B. Garfunkel who wrote (6487)	6/26/2000 10:42:00 AM
From: Arrow Hd.	Read Replies (1) \| Respond to of 8220

Jules, there is nothing confusing in my post. You simply want to reconstruct it to promote your hypothesis that Intel will control the Server chip market and that is not going to be the case. IBM spends huge amounts of dollars on chip R&D to insure that they would never be in a position where another company controls a piece of the IBM food chain since that could erode margins much faster than the normal price attrition every technology company faces including Intel. Mainframes are a good example. IBM went from expensive Bi-Polar technology to less expensive CMOS technology so that this platform could absorb the price attrition against other platforms and then spread their costs by OEMing the chips to other companies. The S/390 chip even works on Risc and PC based IBM machines. And the S/390 chip architecture runs UNIX and Linux on mainframes. Intel isn't part of any of this. Intel is used by IBM where it makes sense to use it which is not everywhere and certainly never to be totally dependant upon it. That was the essence of my first post. The industry both competes and cooperates at the same time.