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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Engel who wrote (61672)	8/2/1998 1:23:00 PM
From: rudedog	Read Replies (1) \| Respond to of 186894

Paul - I for one would be very surprised if CPQ, which uses Intel technology in virtually all of its high-profit systems (except for the handful of Alpha systems) would go to 'war' with Intel. A much more profitable course for CPQ would be to work with Intel over the stabilization of the 64 bit computer environment, with CPQ as the thought leader in that space. HP, IBM, Sun, and Dell will not be using Alpha - CPQ needs to take the systems leadership position in IA64, leverage their service and development capability to differentiate, and strengthen their relationship with Intel. Anything else would be silly. It is interesting to note that DEC service drove more than 70% of the exchange seats out there, and that half of those were installed on CPQ systems even before CPQ bought DEC. CPQ could do the same for the IA64 space - get the HW business if they can, and if they can't, get the service and systems consulting business, own the account, and get the HW business next time. People need to separate a marketing position supporting Alpha from a strategic direction supporting 64 bit. What do folks think CPQ will say about Alpha, given that it currently comprises more than $4B in high-end systems business and is the key to domination of the 64 bit space until IA64 is available? These guys ain't dumb... I would expect to see some messages from CPQ over the next year which gradually submerge the Alpha message into a 64 bit message, then gradually submerge that into a broad IA64 support message. CPQ must move very carefully to preserve all of the assets they acquired with DEC, including the Alpha installed base. But they know where their bread is buttered.