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To: jim kelley who wrote (84914)	12/11/1998 1:29:00 PM
From: rudedog	Respond to of 176387

Jim - CPQ direct program targets the small business segment(SMB). This is the segment that GTW and MUEI are after. I agree completely, this is an incremental market for CPQ as they are also not big in SMB at the moment except with their SCO systems. if saturation is occurring for DELL it is also occurring for CPQ. I also agree that the saturation argument is ridiculous. There is no sign of saturation that I can see. Now it looks like Techdata and Ingram are going to be competing with CPQ, IBM and HWP in the white box market. This can not be good news for CPQ. Here we have a difference of opinion. Techdata and Ingram have had this capability for a long time. They have not made significant inroads. They are even less efficient than CPQ in this space and they are competing against mom and pop who can survive on 5% HW margins. I see those guys getting squeezed hard, too bad for them but not necessarily bad for CPQ. The smart money is going to get out of CPQ stock before the end of the current quarter. I have certainly not ruled out lightening up on CPQ early in January - as you say, it is a lot harder to tell what is really going on there. But if they are really getting their enterprise plans together I will probably stay with them a while longer - I've certainly paid my dues and I want to maximize my return before I shake hands with my silent partner Uncle Sam.