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

To: Steve Porter who wrote (15111)	1/26/1998 9:28:00 PM
From: Spots	Respond to of 97611

You make part of my point. CPQ would have to overcome that resistence in the face of DEC competition if they attempted to build it themselves. This way they can play on DEC's actual strengths and use resources to eliminate weaknesses rather than competing against strength and using resources to exploit weaknesses. Of course, there will be a lot of resources required to overcome weaknesses. In the Tandem acquisition there were VERY few layoffs. Most of the restructuring charges came from the executive suite. I can't see that being the case with DEC. I hope the "accretive within a year" statement pans out, but I'm worried about that. Regards

To: Steve Porter who wrote (15111)	1/26/1998 11:34:00 PM
From: Craig Freeman	Read Replies (1) \| Respond to of 97611

Steve, you must be too young to know that many DEC clients bought their systems before CPQ manufactured its first desktop PC. I have a few DEC users as clients and despite the age and ineffeciencies of their systems, they would rather pay DEC thousands of dollars every month to keep them alive than to pay far less to lease modern systems. It's a matter of "if it ain't broke don't fix it". When it finally breaks, CPQ is now virtually guaranteed to get the replacement sale. And most of those sales will be of overengineered, overpriced servers with incredible markups and incredibly profitable support billings for years to come. Craig

To: Steve Porter who wrote (15111)	1/27/1998 1:13:00 AM
From: ed	Respond to of 97611

Now CPQ is #1 in PC business. Without buying DEC to shorten the time for CPQ to get into the high end, what will be left in CPQ's pocket five years down the road? Today's acquisition shorten the time for CPQ to get into the high end corp enterprise business, CPQ not only gain DEC's market shares (high end business) immediately, but technology, i.e CPU, network, software , server ...etc. So the price is cheap. It saves CPQ at least five years. Now, HWP, SUNW, IBM are really in trouble. For DELL, if it did not make a decision to buyout SUNW, it will really be in big trouble. HIGH END CORP MARKET IBM HWP SUNW DEC SGI \| \| \| \| \| \| \| \| \| \| \| \| V V V \| \| \| \| \| \| \| \| Boundary ______________________________________________ \| \| A \| \| \| V V \| \| \| A \| \| \| \| \| \| \| \| CPQ DELL LOW END PC BUSINESS All want to cross the boundary, some from the top some from the bottom up. Now CPQ take a big jump by merging with DEC. The next will be DELL with SUNW, otherwise both will be in big trouble five years down the road!!!