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

To: garrick le who wrote (62782)	9/1/1998 8:40:00 AM
From: divvie	Respond to of 176388

>>what will they do if consumer spending slows down and the sub-500 PC becomes the mainstream PC :-))<< I keep trying to tell someone on the bear thread that the consumer market and the corporate market will diverge dramatically so what happens in the former will not affect the latter. Once set top boxes become as easy to operate as a TV, such that my mother can use the damn thing, then the traditional consumer electronics players (sony, etc.) will jump in and DELL will be hard pressed to keep up. However, the corporate market gets more complex as NT accelerates its march into the enterprise because it (along with SQL Server) is simply not scalable enough without additional hardware and software. What kind of servers do you think are going to power these thin clients? If NT wins (which it seems increasingly likely to do) then more hardware will be sold because you need an inordinate amount of clustered NT servers to do the job of a single mainframe or Unix server. But NT boxes are cheap you say. If you want performance, capacity, failover recovery and the highest level of RAID, CPQ will sell you their 7000 series for $100k. You do not compromise on hardware if your business depends on it. I'm not talking about the small business that DELL sell to right now with their 5 to 15k servers, but rather the customers like the NASDAQ who need close to 100% up time and immense capacity. If DELL start moving up into CPQ's server territory then, even with the consumer market lost I think you'll find DELL will be able to maintain its growth. BTW, I still prefer Unix to NT as NT is NOT ready for the enterprise until atleast NT 5.0 which is extremely late. But initial costs look cheap compared to Unix so companies buy into it, only to find support costs and additional license costs escalate out of control. If you know the markets in general, fine. But there is a lot you need to know about the corporate computer market if you value qualified opnions.