Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Data General Corp. "dgn" -- Ignore unavailable to you. Want to Upgrade?

To: David Lawrence who wrote (198)	3/13/1998 12:15:00 PM
From: Mohan Marette	Respond to of 354

Much obliged David,very informative indeed.<eom>

To: David Lawrence who wrote (198)	3/13/1998 2:15:00 PM
From: Michael Watkins	Read Replies (2) \| Respond to of 354

I agree with everything David says and can add: CLARiiON - the fastest growing area of DGN's business over the last few years. Not sure what current stats are today, but a couple of years ago Hewlett Packard (HP) was their biggest customer of CLARiiON arrays on an OEM basis. Excellent product at the high end of the storage array market. Probably the most profitable business unit for DGN. If they sold CLARiiON off alone it would probably be a rising stock star. AViiON - was a leader in Symmetrical Multi Processor UNIX market 5 -7 years ago; lost some ground because no one wanted to buy Motorola based UNIX; caught up a whole bunch over the last few years since they moved to an INTEL architecture for most of their products. Coupled tightly with AViiON performance is DG/UX, their brand of UNIX. DG was always a leader in UNIX innovations, but not many people knew that or cared. They failed to get the mind share that HP or IBM or SUN had on their UNIX flavours, consequently some large applications vendors made DG a tier two product, in spririt or in fact. DG/UX while an excellent product is doomed to slide away in favour of "industry standard UNIX" mostly coming out of UNIXWARE. Their main assets have been - CLARiiON - Intellectual capital in the business of extracting maximum performance out of multi-processing machines in the UNIX world. Mostly realised in the form of DG/UX; some lower level architectures (their work in NUMA and INTEL SHV multiprocessing initiatives). If they only had market pull like HP and the others, their PE, earnings, etc would be much better and very predictable. Re the rumours, I'm not sure what DELL would gain from a purchase. Perhaps a storage management co could buy them to wipe out competition. HP doesn't need them; Compaq - I always thought they might be a suitor from way back; IBM - no; SUN - if they want to get into INTEL quickly, then yes yes yes; hmnnn... Re their service business, no one will look at DG's Services business in the same light that Compaq looked at Digital's services business. With the possible exception of their Healthcare Business Unit, DG isn't in the services/consulting game. IMO An Ex DGN'r. Michael