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

To: gmccon who wrote (38994)	4/26/1998 11:32:00 AM
From: rudedog	Read Replies (3) \| Respond to of 176387

Greg - CPQ is also good at building from within and created a workstation division in 1996. On its own merits it has been pretty successful, growing at the highest rate of any CPQ division in 1997. But CPQ determined that to get beyond the 'low hanging fruit' in the workstation business, the company needed close relationships with the software developers in the high end of that business, and also the ability to create new technology in basic workstation architecture. Dell is largely dependent on Intel for the architecture of workstations, and Intel tends to head for the volume middle of the road in design (that's where they get the most ROI for R&D investment). There are really only 3 volume players in the high end workstation market (Sun, HP and DEC), and an additional important niche player (SGI). Of these, DEC clearly has the most to offer CPQ in terms of immediate customer and developer resources given that Sun and HP are not potential acquisition targets and SGI has a weak relationship with MSFT. Dell is obviously on the same path as CPQ in this space but about 18 months behind in execution. They might make a play for SGI at some time in the future IMO since that is the last available entry point into the closed fraternity of high end workstations. This is a good strategy but they seem to be a little slow in going after it.