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

To: Lee who wrote (78491)	11/12/1998 9:23:00 AM
From: rudedog	Respond to of 176387

Lee - insightful comments. The HW margins are very slim in the VAR business, I agree with the 8% average and so does CPQ, that is exactly the average they set up with the agent model. CPQ has acquired the best PC service business in the world with DEC - remember that's the organization that put Dell into the #1 service spot. The plan is to develop a line of products which have very controlled and manageable service components, and train the VARs on how to do that. I have not seen all of the details on the service side of the CPQ announcement but I have heard it was a major focus of the development effort. Also insightful on the MS piracy issue - I believe that MSFT is providing field support for this CPQ initiative aimed at making it easier and cheaper for VARs to use legal MS software as a way to combat piracy. Obviously a lot to learn yet but so far I am very impressed, I was expecting a marketing hype event and instead we got this, which I believe has real substance and represents good thinking and execution on CPQ's part. BTW I do not believe this alters my analysis of market dynamics between CPQ and Dell, it reinforces my opinion that they will increasingly play in different spaces. Folks should ignore the hype and look at the markets being served to see what's really going on.