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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Fiondella who wrote (41120)	11/28/1997 2:52:00 PM
From: Mary Cluney	Read Replies (2) \| Respond to of 186894

Paul,>>>Since UNIX is still the predominant system on the kind of boxes Intel's Merced will be targeted to replace (read SUNW) and I assume you are not waiting for NT to replace UNIX, then IBM already has Merced checked. IBM plans to replace legacy systems with IBM systems, naturally.<<< It seems as if HWP & SGI have waved the Unix white flag and rumours to the effect that SUNW is keeping its options open. Check out the NT numbers replacing UNIX. As much as I am leery vis-a-vis MSFT - they seem to execute quite well. Selling them short is not all that smart. NT unit sales are currently higher than Unix sales. As for IBM vis-a-vis legacy systems - they are between a rock and a hard place. It will be quite difficult for IBM sales people to give up the easy money of legacy systems maintenance and upgrade. Why do you think these systems have persisted? As far as legacy systems are concerned in total, you don't need 100% of the market to be wildly successful. Few people can really comprehend the size of that market. Everyone can relate to someone having to save up $1000 to get the most computer for their dollar. But, very few people understand the $600 billion needed just to fix date routines in legacy systems for the yr2k. With $600 billion, you, Paul Fiondella, can supply every human being that has ever existed on this planet (plus all the Neanderthals that you can dig up) with one of your sub $1000 computers!. >>>Now as to the low end market. My point was that at the time of the introduction of the PC it was UNDERPOWERED compared to anything being used in industry. Nobody bought the PC because it was faster than a VAX. They bought it because it was cheaper than a VAX and could do some of the same things (alla spreadsheets, wordprocessing etc. etc.)<<< Toyota started selling low cost automobiles. Now they are making Lexus. Margins are quite a bit higher. They are leaving the low end to Hyundai, et al. Same will be true with Intel - they will leave some of the low end to AMD and Cyrix for no other reason than to satisfy Janet Reno. Regards, Mary