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To: Voltaire who wrote (81228)	11/18/1998 10:40:00 PM
From: Mohan Marette	Respond to of 176387

Precisely and here is the catch for 'agents' of CPQ Voltaire: Precisely my point as well. Now allow me me to quote further from ML's research on CPQ. Continuing with the report after stating the details of the Agents' commissions etc,the orders thus obtained by the agents will be sent to them.. '.....through a distributor,such as Ingram Micro.The catch for both the reseller and the distributor is that there are is no price protection nor are there any stock adjustments allowed on the inventory.They are completely responsible for the inventory risk.We suspect that distributors will take a conservative approach to inventory positions until there is better visibility for how these initiatives shake out. Compaq said that direct sales represent about 35% of the worldwide market (including VARs) and that the traditional direct market consiting of players such as DELL and Gateway represents 15% of the PC market.According to IDC,the U.S direct market represents just under 30%,not including the VARs (in the third quarter DELL and Gateway alone held 23.3% of the US market and 13.2% of the worldwide market). Of Compaq's North American sales,about 30% are sold direct.However,this number shrinks to about 15% for the Intel-based products........"

To: Voltaire who wrote (81228)	11/18/1998 10:44:00 PM
From: rudedog	Read Replies (3) \| Respond to of 176387

Mr. dealer - we will give you 6% if you will give up 15% from the sale you would make from selling another brand Very simplistic analysis. You should have a little more respect for the big CPQ machine. How about - 'we'll give you 6% up front, relieve you of all of your inventory carrying costs, work lease arrangements for you, and also give you any service plan you want to sell including 2-hour on-site and give you 15% of that too... or you can do the service yourself, keep all the money, and we'll back you up' Net benefit to the VAR - a 15% improvement in his cost structure and the ability to leverage his staff for more business with no capital investment. I saw the pitch to a group of VARs in Phoenix and it was compelling. The VARs were lapping it up. BTW - what's Dell's story for those 200,000 VARs? Somebody better wake up - and don't break your hand patting MSD on the back, this is a $40B market in which Dell has 1/8 the penetration they have in their core business...

To: Voltaire who wrote (81228)	11/19/1998 9:07:00 AM
From: Mohan Marette	Read Replies (2) \| Respond to of 176387

<China> 1.5 million Internet Users in China now,expected reach 5 mil in 99. Voltaire: Looks like DELL now has an 'audience' in China and they are growing. ====================================================== China Registers 1.5 Million Internet Users November 19, 1998 (GUANGZHOU, China) -- China has 1.5 million registered Internet users and the number is expected to reach 5 million users by December 1999. Chinese computer users will comprise an important consumer force in the near future. Computers have emerged as useful tools for locating jobs, conducting business, purchasing or selling stocks and accessing electronic news. And Chinese children, who formerly opted for computer games, are now using PCs to search for information via the Internet, industry observers said. Some 45 newspapers and television stations in China have established Web sites, including Xinhua News Agency, the People's Daily and China Central Television (CCTV). Many Chinese families with high levels of education are accessing the Internet, with some 10 percent of the over 300,000 Guangzhou families with computers surfing the Internet. For example, the family of Hong Xiujuan in Guangzhou regularly surfs the Internet to find information for a variety of purposes. The Internet has enabled the family to regularly contact friends and relatives living abroad, in addition to helping Hong keep up with the latest developments in academia. "I've been using downloaded computer programs to teach my daughter English, and she's learning quickly," Hong said. (Xinhua News Agency)