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

To: jhg_in_kc who wrote (55009)	7/29/1998 12:37:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

jhg - CPQ took a hard look at GTW in 1996 for exactly this reason. They backed off, partly because of the potential conflict with their channel. I think any of the indirect vendors (say CPQ, IBM and HP) have this problem - they have so much business tied up in the channel that it is hard to make a shift without taking a big revenue risk. It seems likely to me that Dell would outrun anyone taking this strategy and cut them up. GTW would probably like someone to buy the idea, but I don't see it happening unless someone (most likely HP) gets desperate.

To: jhg_in_kc who wrote (55009)	7/29/1998 1:37:00 PM
From: Sig	Read Replies (1) \| Respond to of 176387

From Chuzz'es post, is GTW a Threat to Dell??? <<< However, GTW is a threat because it could be purchased by another company and used as a separately branded manufacturer expressly for the purpose of challenging Dell without jeopardizing the parent's market position. In other words, GTW could be used as an efficient tool to breach the chasm. Any thoughts>>> I think both Ted W. and Michael. D are both successful 'individualists' on their own turf,well aware of the value of loyal well-treated employees. Gtw being in South Dakota and new plant in Salt Lake city is unique. We know Dell is highly efficient,and GTW probably also but I don't know as much there. If IBM bought GTW, and started sending orders 'down from the top' there would be trouble.They would have been better off to buy GTW stock, and then contract to have GTW build computers for IBM, perhaps using a few more IBM components in them. Dell portable sales are booming, even while up against gtw products, and Dell tends to go 'where the other man ain't', like providing truly low-cost servers and workstations. It seems that everyone is moving toward web sales,in which case GTW is just another Dell competitor no matter who owns it. IMO Ted W is not going to sell gtw until things get a lot tougher than they are now, lots of computers will be bought to handle yr2k updates.And consider what kind of taxes he would have to pay. And having said this, I hope he don't put gtw on the market tomorrow(Hehehehe) Sig