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To: Harry Landsiedel who wrote (54913)5/1/1998 1:05:00 PM
From: Sueponine  Read Replies (1) | Respond to of 186894
 
All, I am just reading an article in today's IBD, "Keep Eye on What Smart Money is Selling", Leading Mutual Funds are Lightening up on Intel.
I have been watching these "sells" in the Mutual Fund section for some time.
I don't know how much longer I can hold this issue; it has been dead money for me for such a long time.
So, who have you got in the Derby? I'm liking Artax.
Later.
Susanne.



To: Harry Landsiedel who wrote (54913)5/1/1998 2:10:00 PM
From: Paul Engel  Read Replies (12) | Respond to of 186894
 
Harry - Re: "It seems to me they are saying that the world would rather invest in wider roads than in faster cars. I don't see these choices as mutually exclusive. Do you? "

No.

And here's why.

A lot of "analysts", who have recently purchased their first computer and finally got it to connect to the Internet, perceive the Internet and INTERNET ACCESS as THE ONLY use for PCs.

For starters, they don't see that at the other end of the Internet from their own PC happens to be an ISP with a barrage of Servers and Disk Storage Farms that happen to be Serving "him" and perhaps hundreds, if not thousands, of others.

That ISP is connected to the "WEB" with HUNDREDS OF THOUSANDS OF NODES, every one of which is made up with one or more SERVERS trying to serve up and/or pass on information through the WEB.

True, the Interconnection requirements are routers, switches, fiber optic cables, shielded cables, etc., but...they ultimately terminate at a SERVER FARM or a PC.

And who makes these Servers? Compaq, Dell, Sun, DEC, HP, Sequent, Netframe, Amdahl, IBM etc., most of which use Intel Inside as the Server Engine.

And that is just the "NET".

And who put up these pretty Web Sites that we all see on the "Net"?

Engineers/Software developers who require enormous CPU power to process and compile and re-compile their programs and routines that are being developed.

And who designs the routers?

Engineers with powerful WORKSTATION requirements that can perform detailed engineering design, simulations, verifications, etc. so that he can develop new routers and switches that work first time out of the box.

And what goes in to those routers?

Integrated circuits - standard and/or custom ASICs that have to be designed by other engineers using THEIR OWN WORKSTATIONS for similar EDA applications.

And who orders all the parts that go into these?

Purchasing managers that need to connect to suppliers' databases to see if parts are available, pricing, delivery schedules.

And who writes the documentation for the manufacturing of these boxes?

Why, technical writers and illustrators using the fastest PCs they can get to generate graphics, diagrams, wiring lists, page lay outs, revisions, and assemble these into professional documentation for their own manufacturing and customers.

And where does the sheet metal enclosures and or molded plastic cases come from that house the inner electronics?

From industrial designers and engineers that rely on Workstations or PCs to perform 2D and 3D design and modeling, generate detailed drawings, bending diagrams, hole patterns, etc. And in the modern world, these "designs and specifications" are furnished to cabinet shops, injection molders, etc. who take the design and generate NC tapes for programming their sheet metal presses, shears, stamping machines, or NC control of injection mold cavities, taking into account plastic expansions/shrinkages, mold flow characteristics of the polymers for the cases.

And the paint, decals, logos, IDs, etc. for the case exteriors are also laid out with 2D engineering graphics by designers who furnish electronic specifications to paint shops, screen paint "forms" for screening on the details..all through PC data.

And how is this stuff sold?

Why, through advertising often employing computerized special effects showing 3 Dimensional models, convolving through our television sets - all of which were developed on powerful PCs with fancy 3D modeling software, then put into "TV FORMAT" with computer-based Video Editors. How many TV adds do you see that DON'T USE COMPUTERIZED SPECIAL EFFECTS?

And who hires all these people?

Human resource personnel who place adds using their simple PCs, employ sophisticated scanning techniques for employee applications, sophisticated databases to keep track of benefits, salaries, vacation days, sick days...not to mention administering detailed health plans which...have to be connected to third party health care plan providers, again via PC-to-PC communications.

And who pays all these people?

Why, accounting departments with payroll generating software which in larger companies is interfaced to third party payroll providers (ADP, Bank of America, etc.). And these payroll departments have to keep track of hours worked, time off, overtime pay, tax bases for state tax, county tax, city tax, federal tax, Social Security, 401 K plan contributions, etc., all done with electronic data entry systems connected to PCs for data collection and processing.

And where do these workers get their food to eat?

At grocery stores that use computers for inventory/bar code scanning, check-out scanners, etc.

And how do these stores get their food?

Their computers generate required inventory lists which are UPLOADED to corporate data sites which are then downloaded to corporate warehouses where automatic loaders/robots sift through "miles of aisles", picking out crates and boxes, placing them on to computerized conveyor belts that converge to the loading docks...where the contents are scanned into computers to generate bills of lading and invoices for the truckers to deliver to their customers.

My point is that the "NET" is a very visible thing but the real world is out there in not-so-visible terms. And this real world relies on computers for engineering, design, purchasing, sales, marketing, human resources, etc.

It is a vast inter-related, complex network that requires enormous horsepower requirements in terms of CPU capability.

And...it is a COMPETITIVE environment.

The company that wants to beat the pants off its competitors tries everything in its power to gain an advantage...and deploying the latest, most powerful CPUs is very often a VERY COST EFFECTIVE way of doing this when comparing computer costs to the BURDENED PERSONNEL COSTS for skilled workers.

Paul