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

To: hdl who wrote (106963)	3/4/1999 11:00:00 AM
From: Kenneth Aird	Respond to of 176387

I expect Dell will favor whatever vendor gives them the best product at the best price with the best and most dependable delivery. In answering a question, Mike Lambert of Dell implied that Dell tries to minimize the number of their suppliers in order to reduce complexity, and stated that it is important that suppliers be able to meet the demands of Dells rapid growth. Clearly IBM can meet that demand in some areas, and will naturally get a large part of the business. It is similar to the way Intel became dominant in processors because they were the only ones able to ramp production fast enough to meet the demand. BTW I did not get the feeling that Dell needed to make any major concessions to IBM in order to get access to their technology. IBM is trying to sell the technology to anyone who wants it and Dell may have negotiated patent and information sharing agreements from IBM in return for their business as a customer of IBM technology. Remember that while Dell may get 300 patents a year, mostly manufacturing process related, IBM has many thousands of patents on product technologies. Access to proprietary information on future IBM products can allow Dell to be compatible with them at introduction without reverse engineering. Ken