To: Mohan Marette who wrote (84100 ) 12/7/1998 8:30:00 PM From: kemble s. matter Read Replies (1) | Respond to of 176387
Mohan, Hi!!! RE: Dell Data Storage...CHANGING THE RULES OF THE GAME????? Interesting that I click on and find you sending me info on this...coming home and clicking on news from Dell that announcement caught my attention... thought I'd do some research from the "bibles" and found a few notable announcements that may add some light to this ....first, let's start by using a quote from today's link... "Today's announcement significantly expands Dell's portfolio of storage products to meet our customers' varied needs and ensure the integrity of their business-critical data," said Michael Lambert, senior vice president of Dell's Enterprise Systems Group. "Over the past 12 months, we have forged significant relationships with key industry storage players. Now we are beginning to deliver industry-leading products that we believe will positively change customers' expectations of their storage provider in terms of the price they pay and the capabilities they receive." Mohan I go back to June 30th of this year and found the original announcement of Dell entering the Data Storage Market....below are a few quotes I found interesting then .....have talked of these in past posts....previously too lazy to find the exact quotes but today is the opening day so to speak....thought I'd get it verbatim for this ribbon cutting day....as you may remember this was one of the two questions I asked Robert Williams at the briefing this summer...his answer to my question caused a huge smile.....I bought a bunch more just on his smile... :o) 1. "OUR DIRECT WAY OF DOING BUSINESS MEANS CUSTOMERS NO LONGER HAVE TO PAY THE PROPRIETARY MARGINS SOME ENTERPRISE COMPUTER VENDORS HAVE BEEN CHARGING THEM" msd 2. Morgan Gerhart, an industry analyst with Meta Group, said the new products closed the gap on some of the performance issues that had kept Dell from competing at the high end of the corporate computer market.... 3. "Dell's entry into the data storage business was also crucial to its corporate PC sales growth strategy, he said.... 4. (gotta love this one) By not offering storage products, Dell allowed rival server makers with such products to grab high-margin dollars to subsidize their product lines against Dell's low-priced, direct distribution assault, Gerhart said..... 5. While Dell's highly efficient manufacturing allows the company to deliver server orders within four days of customer requests, rivals relying on indirect distribution take around eight weeks to deliver orders, Gerhart said..... 6. (If this statement doesn't want to make you buy more Dell nothing ever will...) Roughly half of corporate customers only consider computer makers that offer one-stop shopping for hardware, data storage and related hand-holding services, but the rest consider cost the main factor in buying decisions, Gerhart estimates...Among this latter group of corporate buyers, Dell's low-cost distribution linked to outside service contractors offers decisive economic advantages...."They have left a lot of money on the table until now." 7. ( And of course my favorite quote from these two articles....) "THERE HAS BEEN A TRADITION IN THIS MARKET OF OVERPRICING,.......DELL IS GOING TO CHANGE THE RULES OF THE GAME" msd BUY ALL THE DELL YOU CAN..... Best, kemble