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

To: Night Writer who wrote (90537)	3/30/2001 4:21:38 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

T. Kraemer at Merrill/ Intraday report by: skeptically 03/30/01 04:18 pm EST Msg: 227292 of 227294 (T. Kraemer) 30 March 2001 Investor Support Intra-Day Special Call Enterprise Hardware Merrill Lynch & Co. Global Securities Research & Economics Group Global Fundamental Equity Research Department RC#11208929 Enterprise Hardware • We hosted six CIO’s on an hour long conference call earlier today and here are the highlights: • IT budgets have not been slashed due to economic weakness. None of the CIO’s whom we interviewed have plans to significantly alter their budgets going forward. Overall IT spending may be flat to down because capital spending in 1999 and 2000 was quite aggressive. Tough compares, rather than a weak economy, may be causing tech’s troubles. • Storage, servers, and web-projects "are pretty much locked in and we have to spend." Things that would be cut back or delayed first would be PC’s, WINTEL servers, services, and consulting. • Sun Microsystems (SUNW; $15.42; B-3-1-9) came up as the server of choice repeatedly and WINTEL solutions were mentioned often, but only Compaq (CPQ; $18.10; B-2-2- 7), Dell (DELL; $26.06; B-1-1-9), and IBM (IBM; $96.61; B-3-1-7). No Hewlett Packard (HWP; $31.16; B-3-1-7). • CIO’s have been de-emphasizing legacy environments like the AS/400 because of poor application support. • One CIO kicked out EMC in favor of Compaq because of their higher prices in mid range solutions. • All agreed that Linux is not ready for prime time and five of six would not consider deploying it anywhere since they would not want to support another OS. One had been using it on a few low end applications. • Data growth, application growth, the drive to web integrate existing applications, deployment of new web based applications, and the need for more business analytics drive storage growth. Management of this very rapid growth is one of the largest pain points for these CIO’s. • Integration of disparate point products in an increasingly complex, fast-paced environment will continue to motivate these CIO’s to reduce the number of vendors from whom they buy and demand more comprehensive accountability and support from those with whom they do business. • Outsourcing of storage seems rather unattractive right now. It remains a missionary sale. Ditto for SAN’s as no one really knew who their switch vendor was. • To sum up, there seemed to be less change and alarm among these CIO’s than the tech market would indicate Ignore this User \| Report Abuse < Previous \| Next > [ First \| Last \| Msg List ] Msg #: Reply Post All Subject Message Text Authors