Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Chuzzlewit who wrote (65801)	9/16/1998 5:19:00 PM
From: D. Swiss	Read Replies (1) \| Respond to of 176387

Chuzzlewit, I don't recall what Rob Williams (of Investor Relations) said of the size of the market when we did our factory tour. I will try to find out. The one thing that I do know is that this is an extremely high margin business and the competition has been making a fortune on this. Dell can easily take significant market share using its direct business model and still make a fortune on this business. :o) Drew

To: Chuzzlewit who wrote (65801)	9/16/1998 5:24:00 PM
From: Boplicity	Respond to of 176387

To go long with DELL's storage systems and to run them INTC has the below cooked up. Warning technical in nature but no too much so. Message 5760019 Read all post to the root post.

To: Chuzzlewit who wrote (65801)	9/16/1998 6:01:00 PM
From: rudedog	Read Replies (3) \| Respond to of 176387

Chuz - The category of interest for Dell growth is 'multi-vendor storage', the category of large enterprise storage where the storage components have a life of their own independent of the servers which use them. This is a relatively new and growing category which used to be dominated by IBM, EMC and DEC, with DG Clarrion as an interesting 4th (mostly through their OEM program to HP). The whole market is approaching $30B. Currently IBM and CPQ/DEC are tied for #1 in this space, with EMC a close #2. IBM and CPQ do a little more than $7B, EMC just under $6B. DG Clariion is under $1B, I don't know the exact number. DG Clariion does most of their sales through HP but recently announced a similar program with Dell. DG has excellent quality and technology. This market is growing at better than 30% per year and may really take off (>50% /yr) as fibre channel storage builds momentum, as the fibre based systems can more easily attach in an independent storage area network which has many benefits for large IT shops. Getting to both a technology agreement with DG Clariion and development of in-house capability to do the base storage components (which is where most of the profit is anyway) was a really solid move for Dell IMO. I think that was another of Mike Lambert's initiatives, he was a strong proponent of this when he was at CPQ in 1995-96. CPQ saw storage business rapidly grow to rival the base server business in revenue, and it is also a high margin line. If this happens at Dell, the storage business alone could add something close to $1B to the top line in '99.