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

To: Sig who wrote (107115)	3/4/1999 2:44:00 PM
From: Mark Peterson CPA	Read Replies (1) \| Respond to of 176387

IMO, what Dell got out of this deal was a shot of growth hormones: the obvious further infrastructure required to support its expected future growth, just-in-time R&D, IBM's excess capacity in operations and human resources, access to new customers without cannibalizing existing Dell customers, a shorter line to the customer from cutting edge technological developments to the UPS truck, consolidated purchasing of selected components that should lay to rest declining gross margin fears, etc. But the intangible items? Well, that ought to shake up all the other white box makers because in a year or so, the only ranking left to fight over will start with the number 2... Don't believe the talk about merger. Neither can afford to buy the other, the cultures are vastly different, and the pride in each heritage downright proprietary and heavily defended. Will IBM consider getting out of the white box business? Time will tell, but they obviously must be paid for it. A seven year time period is probably sufficient for IBM to see how successful it is in developing alternative cash flow streams. Should Dell be interested in buying it? Well, Dell also has seven years in the normal course of business to decide if they care. Any downside to this deal? Well, I'd sure hate to have to go back to using Lotus... Best regards, Mark A. Peterson