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

To: Jim Patterson who wrote (45062)	5/30/1998 1:13:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

Jim - Pardon the late response to your post but the huge volume of Dell posts has got me a little behind. RE: IMO, both companies see the furture of the PC industry as: Selling hardware to get the service and support business. They want to sell solutions, and the hardware is only a fraction of the total bill This is exactly right. CPQ determined several years ago that their customers spend on average less than 15% of their IT dollars on the hardware/software. CPQ was at that time selling about 99% hardware. The thought was that if they moved to more nearly match their customer's spending patterns they could greatly expand their business without having to grow the hardware segment as much, while at the same time building a much better relationship with their clients. They have patiently been building to that model, and over the next few years could expand dramatically, and independently of the underlying hardware business.