To: Mohan Marette who wrote (64026 ) 9/7/1998 9:21:00 PM From: kemble s. matter Respond to of 176387
Mohan, Hi!!! Here are some quotes from June 30th...not the original one you sent but an updated announcement... DELL ENTERS CORPORATE DATA STORAGE MARKET In a statement, Dell founder and CEO Michael Dell said: "Our direct way of doing business means customers no longer have to pay the proprietary margins some enterprise computer vendors have been charging them." 1 Morgan Gerhart, an industry analyst with Meta Group, said the new products closed the gap on some of the performance issues that had kept Dell from competing at the high-end of the corporate computer market.... Dell's entry into the data storage business was also crucial to its corporate PC sales growth strategy... By not offering storage products, Dell allowed rival server makers with such products to grab high-margin dollars to subsidize their other product lines against Dell's low-price, direct distribution assault, Gerhardt said... While Dell's high efficient manufacturing allows the company to deliver server orders within four days of customer requests, rivals relying on indirect distribution take around eight weeks to deliver orders, Gerhardt said.... ROUGHLY HALF OF CORPORATE CUSTOMERS ONLY CONSIDER COMPUTER MAKERS THAT OFFER ON-STOP SHOPPING FOR HARDWARE, DATA STORAGE AND RELATED HAND-HOLDING SERVICES, BUT THE REST CONSIDER COST THE MAIN FACTOR IN BUYING DECISIONS, GERHART ESTIMATES... Among this latter group of corporate buyers, Dell's low-cost distribution linked to outside service contractors offers decisive economic advantages, Gerhart said..... 1 If I can just find that original I will post some of the quotes...this quote from the June 30th release coupled with the Meta Group study was used....Michael was quoted in the original post with some strong statements against the others... Best, Kemble