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

To: Mohan Marette who wrote (55188)	7/30/1998 12:11:00 PM
From: John Koligman	Respond to of 176387

Hi Mohan, OT Thanks for the article. I take what the article says with a grain of salt, because they focus on the 'E-Mail' part. The key to Notes is simultaneous collaboration, which is very hard to do and the part which Microsoft has had all the trouble getting right in Exchange. It can be argued that Lotus would have been much worse off without IBM's muscle behind it. As for IBM not getting the most out of a Gateway purchase, sure that could happen. I don't have much of a read on what IBM is going to do with low end desktop PC's, as I mentioned in my prior post they have just revamped management again. Remember, they are rapidly becoming a service company along with high end hardware/software, so in their eyes will it be lucrative enough to go after the desktop? I don't know. One thing though, they do make the best laptops in my opinion, but you will pay premium prices for their high end. They also have introduced leading edge features in their laptops in a very timely manner (14.1" LCD's, DVD, etc). I think the key is that margins are/were high enough in that space for them to make money, taking their cost structure into account. With desktops, different story, at least in the recent past. Buying Gateway would solve their consumer PC problem quickly. However, Gateway is already doing well in that space, and if they use Gateway in the business end, they run into dealer channel problems... Have a good one, John

To: Mohan Marette who wrote (55188)	7/30/1998 12:52:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Good morning Mohan, I think I probably didn't make myself clear about the potential problem to Dell. The name IBM was essentially drawn out of a hat. The name of the purchaser could be HWP or CPQ or IBM or another computer company. The issue isn't whether IBM's management is up to the task of running a GTW. The issue that I tried to raise is that GTW represents a way in which a computer company can bridge the chasm leading to JIT/BTO direct selling without jeopardizing its current PC market. It would do that be maintaining both operations in parallel and maintaining both brands. TTFN, CTC