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

To: D. Swiss who wrote (106802)	3/4/1999 9:05:00 AM
From: rudedog	Read Replies (2) \| Respond to of 176387

Drew - I agree. Savvy people on this thread and elsewhere have been saying since December that DELL has 2 fundamental problems which need to be addressed - 1) they have reached a size where their base box business will start to get cramped and they need a breakout which uses their great execution, cash management and superb 'fast follower' thinking to expand their reach and 2) they need a deep services play to make their enterprise strategy work. They have now announced substantive programs to address both issues. IMHO the analysts have missed the solid and clean thinking behind these initiatives. The online store has internet business halo, and we can rest assured that DELL will get it right quickly. I for one do not care about their current pricing models but am more interested if the infrastructure, execution, user experience and product mix are right. If they do those things the DELL machine will polish the marketing. IBM is the only other player (aside from CPQ) who can present a credible enterprise service story, and IBM and CPQ are also the major players in SAN storage. So a services alliance with IBM gives DELL the running room to continue their expansion into the enterprise and makes the storage product line credible. If DELL at the same time can help IBM in the volume PC space then they may have a huge win. I see the analysts who never noticed DELL's problems in 4Q98 finally realizing that DELL had issues to address. Maybe in another 3 months they will see that DELL was addressing them in 1Q99.... I am very encouraged by these moves.