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To: Sig who wrote (36198)	3/31/1998 1:45:00 PM
From: SecularBull	Respond to of 176387

Sig, this was a good article. >>Venkie: A fellow SI member posted this to me this morning so will pass it along as reading material: <<<<<< Monday, Mar 30 1998 10:52PM Back on Feb. 9,1998 Business week did an article on the cpq-dec deal that was titled POWERPLAY which explained the might of the cpq-dec deal and how it would effect the other manufacturers. The interesting part was that they analyzed each company by revenue per employee. I didn't notice if you people discussed this article on the thread so this may be old news to you but the results were as follows. CPQ 480,769 Revenue Per Employee IBM 327,083 SUN 373,900 HP 346,620 GTW 484,615 EDS 150,000 And Dell came in at an astounding (at least to me) 738,389 That helps explain why they seem to be the leader in the market right now >>>>> Sig<<<<<<<<

To: Sig who wrote (36198)	3/31/1998 1:45:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Sig, you need to be very careful in making too much of a case surrounding revenue per employe. A business that is capital intensive (as opposed to labor intensive) will have larger revenues per employe. So, service providers will be relatively low (companies like DEC) compared to manufacturers and assemblers (companies like Dell). So drawing conclusion based on this metric really depends on comparing very similar businesses -- otherwise you can get badly fooled. Nevertheless, I share your astonishment at that ratio with respect to Dell. Are you sure it's correct? Regards, Paul