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

To: jbn3 who wrote (42197)	5/15/1998 12:12:00 PM
From: Jim Patterson	Read Replies (1) \| Respond to of 176387

re: 1. According to most sources, 'box' sales are growing at about a 15% annual clip. If IBM isn't getting any "real growth", then other companies must be absorbing that market. I'll bet one of them is... Can you spell DELL? Might we add to that, PC revenue growth in Q1 was only 5%. With the shortfall from HWP, and the continued weekness from CPQ and IBM, Net revenue from the PC industry will be flat to down for the year 1998. You DELL bulls seem to leave this very important fact out of your growth forcasts. Yes, I read the HBR, My take was that DELL has done very well in the past market environment. I think the market environment has changed due to an over capacity situation in every component area of the PC industry. According to T.K., the situation has finaly spread to Microprocessors. If you look @ HWP, CPQ, IBM, GTW, and MUEI, you can see that it is effecting the box builders. DELL is probably immune. Jim

To: jbn3 who wrote (42197)	5/17/1998 10:38:00 AM
From: rudedog	Respond to of 176387

The 'service business' that CPQ and IBM talk about is not the 'break-fix' or even facility planning that Dell currently does. The majority comes from implementation of solutions around specific business problems, primarily financial, telecom related, and manufacturing. The work consists of activities that are a part of the development of the final systems, including software and database design, network design and administration, disaster recovery, guaranteed performance and sizing analysis, capacity planning, and integration of heterogeneous environments. DEC's service business is about $4.8 Billion. More than half of that revenue is derived from support of DEC customers in the relevant industries. About half of the remaining amount is derived from installation and support of large client systems, primarily exchange, done directly under contract to customers. Most of this work is reference sold by Microsoft. DEC is the runaway leader in implementation of large exchange systems, with well over half of the business. This means that all of the support for companies like CPQ, Dell and others amounts to a little over $1B. Of that, about half is CPQ support. My understanding is that service contracts to Dell amounted to about $200M worldwide last year.