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To: Chuzzlewit who wrote (47658)	6/15/1998 2:04:00 PM
From: Lee	Respond to of 176387

Hi Chuz,..Re:<<DEC/CPQ merger>> While I mostly agree with your points, I also believe Rudy pointed out that CPQ could better leverage their margins (via enterprise applications) and service business via the DEC acquisition. Unfortunately, while the 64 bit Alpha application is a current reality, software is lagging (although MSFT has steadfastly confirmed support). So, because of these reasons, I don't think it's specifically because of the Alpha chip but rather the entrance to IBMs somewhat established consultation/partnership business in the high end server market. Maybe this is incorrect but I'm sure somebody closer to the source will correct if so. It is true they can use DEC as a service arm but in many previous conversations, 'field service' is significantly different from consulting service where they would receive higher fees. I think that although the dislocation to Dell service might have been a positive, that maybe that concept doesn't carry the same weight as the concept of moving the fulcrum of the business away from the cutthroat BTO territory to the higher end consultation and server configurations, (more into IBMs territory). Finally, I do agree that future applications are going to Merced because of market share economics and, more importantly, software support. Just another opinion. Regards, Lee

To: Chuzzlewit who wrote (47658)	6/15/1998 2:09:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

CTC, My thinking has been focused on the impact of the deal on CPQ. My experience with the ALPHA machines did not leave me breathless as I have mentioned. Not impressive as a high end server. Also, the high end servers tend to be multiprocessors with up to 25 processors and require special high speed bus architectures. I do not believe that DEC ever put out any special high end bus architecture for the ALPHA. In addition, the software has to be tuned for up to 25 processors so it can take several years to field a high end server to compete with Sun or HP.. So ( I could be wrong) but I do not think they have a credible offering in time to short circuit Merced. Perhaps, Rudedog can shed some light on the issue of high end multiprocessor bus architecture form DEC for the ALPHA. If they do not have it already it is a show stopper because of the time it takes to design, develop, and manufacture. I agree with the rest of your assertions although 3 appears to be minimal dislocation to DELL so far. It also represents a big loss of revenue to CPQ. Jim Kelley