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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (54725)	4/28/1998 8:10:00 PM
From: Francis Chow	Respond to of 186894

<Your point is................what?> Not trying to make a point, just making an observation :-)

To: Lizzie Tudor who wrote (54725)	4/28/1998 8:13:00 PM
From: Francis Chow	Read Replies (1) \| Respond to of 186894

<For example.... Intel just bought Ariba, didn't they? Well check out the Ariba architecture (hint: its Java). Now since they bought it today, it probably runs on unix> I will check Ariba out. If it's Java then it should run anywhere (you can run a Java VM that is).

To: Lizzie Tudor who wrote (54725)	4/29/1998 8:04:00 AM
From: Shibumi	Respond to of 186894

>>Right. I see a hetrogeneous environment, mainframes, LANs, CORBA, client-server, Java, and browsers - all of which will become a big management headache.<< >Your point is................what?< I got two points out of it. First point: look for companies that are selling solutions associated with managing heterogenous environments, particularly those that have a strong presence in both mainframe and open system environments. IBM and CA leap to mind, although IBM is far from a pure play here. Intel isn't much of a play in this other than indirectly -- lots of companies, particularly smaller ones, will give up trying to make all this work and end up switching over to a homogeneous Wintel environment. Second point: Intel has a great opportunity to segment the market and charge very high margins for higher end chips that target the mainframe replacement/augmentation market. Obviously, with Xeon, they're taking a step here -- but they can take much more of a step in going after the upper end server segment. Put another way, Sequent is selling a 256+ processor system and is using the same branded devices that are used in PC's. Unlike a PC, however, the processor is a much smaller portion of the gross margin in a Sequent system. Intel has the opportunity to climb this value chain -- if there's anyone at Intel who understands the high-end ($100K and above ASP) server market. Given a company as good as Intel, the question in my mind isn't whether they will, but simply how long it will take them. They could start by cherry picking parts off the line capable of overclocking (verified by the test equipment), branding those parts as high-end server components, and moving on those. Just my opinion...