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To: NOW who wrote (7256)	7/30/2000 7:01:37 PM
From: chic_hearne	Read Replies (1) \| Respond to of 436258

Re: What's wrong with IBM as a short candidate? david, I might be a little biased. ;-) IBM was taken apart in the 90's by nimble competitors. Things are a changing. I don't think anyone will argue that Services will be doing great. On the software front, Oracle screwed up bigtime by trying to enter the ERP segment, while IBM told its customers they won't compete. In turn, companies like SAP have changed their DB of choice to IBM. These projects take years to do, so the benefits are just starting to show up. In the server arena, you only need to look at the S80. Since copper chips were introduced in November, the S80 has out sold Sun's E10000 on a 3 to 1 ratio. Copper chips hit the rest of the server line the last month of Q2. Last week, the new POWER3-III's at .18um were introduced in a few select servers. It's only going to get worse for the competition when POWER4 comes online next year. For servers, look at chip technology. Who else has an advanced copper fabrication plant besides IBM and AMD? Nobody. The S80 only has 24 processors and it runs circles around Sun's E10000 with 64 processors, it will only get worse when the .18um chips are included in the fall. New mainframes, etc. The only bright spot of Q2 earnings were webservers. In other words, a lot of momentum. Combine that with the last 4 quarters being crap, it will be easy to show decent growth. Also, don't count out Lou. It's getting near the end of his reign and he's going to pull out all the stops before G dubya appoints him to the secretary of education post. I think there's better shorts out there....