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

To: Lee who wrote (51415)	7/15/1998 1:28:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

lee - I think Dell can manage their service needs and also 'tier 2' services (planning for standard installations, sizing etc.) through a partnering model. EDS, AC, and others in the consulting game will be eager to work with Dell since they are the last of the big players who do not have an in-house consulting capability. This approach fits the Dell model and would be easy for them to accomplish. Dell will have to think long and hard about developing the kind of consulting capability which will allow them to compete effectively for high end corporate IT business. Creation of that capability will put them in competition with the consulting houses who currently push a lot of Dell into the lower end of the enterprise. so Dell would lose what amounts to a free sales force and highly leveraged services in that space. They would have to either acquire or develop practice-oriented services, which is a high fixed-cost business with low ROI compared to Dell's current business. My sense is that Dell is looking at those options but is also looking at a breakaway model which builds growth capability in a way that is more compatible with existing business thinking and philosophy. One way to do that would be the lateral expansion you discuss, where Dell's excellence in execution could be leveraged.