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

To: AJ Berger who wrote (36676)	11/16/1998 4:35:00 PM
From: rudedog	Read Replies (1) \| Respond to of 97611

The tension you describe is quite visible in the larger VARs, but there is no safe haven for them - HP and IBM have the same issues to deal with and a lot less respect for the channel so your buddy is probably jumping out of the frying pan and into the fire. CPQ as a great plan for small VARs - full inventory financing to leverage the small guy's cash, complementary service offerings that allow the VAR to make money on his own service with CPQ picking up the high risk low profit stuff, and some amazing refresh options. Also a nice internet link (really extranet) which allows those small guys to enjoy many of the benefits of the larger players. I have talked to a number of small VARs who are in love with the program and will be replacing their white box business with CPQ. There are more than 200,000 of these small guys, and they currently move tens of millions of systems collectively on an annual basis. CPQ has almost none of that business today. I am not too worried about the response of the traditional channel. They have to share the pain or get out of the game.