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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: ben. who wrote (32549)	9/10/1998 12:54:00 AM
From: rudedog	Read Replies (2) \| Respond to of 97611

Ben - The problem is that companies are no longer buying that many of those I hate to burst your bubble, but the high end market ($250B) is 5 times bigger than the PC market ($50B) so your point is not well sustained by the data. Your idea that PCs can do what workstations and servers do is also very naive. Why do fortune 500 companies spend $100K for a high end proliant when they could do the same job with a $2000 desktop? Just dumb I guess. It seems that you know little about high end architecture. There are good posts both on this thread and on the Dell thread (Meathead is particularly good on this topic) if you would like to educate yourself. Your comment is a little like saying 'why do those truckers spend $100,000 for a Peterbuilt when they could do the same job with a jeep with a trailer hitch and a UHaul 4x6'.

To: ben. who wrote (32549)	9/10/1998 1:38:00 AM
From: Aitch	Read Replies (1) \| Respond to of 97611

Ben, thanks for your comments. I have to agree with Rudedog's comments though. Also, I think that you are still placing CPQ in a "PC Manufacturer" frame. As you stated, the marketing strategy has to change, this is clearly happening with the shift to emphasis on services, both consultative and technical. (See compaq.com for an example of this direction). In addition, there is a shift to direct contact with major accounts with fulfillment through existing channels. (Note that CPQ is not trying to oust the channel, they only get involved directly where the end-user requests it). This is also a significant paradigm/strategy change. Of course, time will tell! H