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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Doug Fowler who wrote (23687)	12/1/1997 10:38:00 AM
From: jbn3	Respond to of 176387

Doug, Can't speak for the rest of industry, but the U.S. armed forces could save BILLIONS by using video conferencing. Not only do they save on the actual incurred costs of sending hi-brass or civil servants to a meeting somewhere, they save by having those people on the job and doing the work for which they are being paid. That they can, is obvious. Whether they will is an entirely different question, since the brass can pick up a lot of pocket change by traveling and getting per-diem costs -- as well as the chance to strengthen the old-boy network. Regards, 3.

To: Doug Fowler who wrote (23687)	12/1/1997 1:53:00 PM
From: Meathead	Read Replies (3) \| Respond to of 176387

Doug - you can get all that today from dell for about $1200 w/monitor. It could esaily drop to $800 shortly. Dell also has Optiplex systems 166Mhz 16Mb/ram 2G HD etc. starting at about $1000. Corporate customers have always been able to satisfy basic entry level computing needs starting close to 1K... the questions are, why have they historically not bought them in any large quantity? Why is it, as of today, they aren't buying them. Why do they insist on more full featured machines? Why is this all of a sudden going to change if the price drops a couple hundered more bucks? The real reason is that the low end corp boxes can only fulfill a portion of a company's needs, not anywhere near all of them, and for most, not even the largest portion. We don't see this changing in the next few years. We do see overall ASP declines for corporate desktops on the order of 10% over the next several quarters however, but for machines 4 times more powerful than what's available now. This won't hurt too much. Contrary to what you may believe, ASP's won't get cut in half overnight because all of a sudden, Dell's customers feel they've been duped or overbought or decide 200Mhz is enough. Dell is also positioned to make up for lost margin's in the Desktop world anyway with the server and workstation initiatives. So, ASP declines in the desktop world are definately going to happen... but not at the alarming rate some out-of-the-loopers are predicting. Cheers MEATHEAD