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

To: Will Hou who wrote (20194)	3/7/1998 12:41:00 AM
From: J. David	Respond to of 97611

Briefly, I believe the consensus opinion, for what it's worth, is that CPQ bought DEC to gain access to the high end corporate market. DEC's service organization has a lot of respect there. DEC also has closely allied itself with MSFT over the past few years and this is what encourages me the most. Hopefully, CPQ will now have the credibility to place more NT based servers in mission critical corporate applications...and just as the new version of NT appears on the horizon. Perhaps, as someone stated earlier, this will offset some of the margin erosion currently being experienced by CPQ. And for heaven's sake no lawyers...we already have enough problems.

To: Will Hou who wrote (20194)	3/7/1998 12:44:00 AM
From: Carl Wysocki	Read Replies (2) \| Respond to of 97611

Will, in response to your 2nd point ( I wish I knew how to quote), I'll offer up my opinion. I'll give management credit for recognizing that they can't ultimately succeed just by pushing iron out the door at low cost, and really needed to offer the customer a complete range of sales and support services in addition to their hardware sales to distinguish themselves from the iron mongers and be competitive in the high end server area with SUNW, HWP and IBM. I'm not certain there is any analogy with SGI/Cray and CPQ/DEC. The DEC acquisition fills a void in CPQ's ability to deal in the high end of the market and I'm not sure what SGI really got out of Cray. SUNW got an awful lot when SGI sold what is now the E10000 to Sun for a song (and, perhaps a little tap dance), but that's a different story. Carl