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

To: Dave B who wrote (110550)	3/22/1999 8:47:00 AM
From: rudedog	Respond to of 176387

This is obviously a hot market. I believe that Mike Lambert is on stage at Brainshare this week doing a keynote in which he will highlight this area. If Novell is successful in their OEM strategy with this series of products, they will certainly take the wind out of a lot of sails, including Net App and CacheFlow. But I doubt whether DELL can sustain any long term advantage here against the other big OEMs. CPQ has 60% of the installed Novell base and will surely not be late to the party. HP and IBM are likely to have offerings also, although it is hard to imagine that they will execute anywhere near as well as DELL. I would see these products heading into a bracket around $3000 with DELL and CPQ dominating at virtually the same price point. Unless CacheFlow and Net App can get some unique advantage they will quickly be marginalized. The interesting sidebar here is that Microsoft is not in the game at the moment, despite having a proxy product which has been on the market for almost 2 years. This creates an interesting conflict for CPQ which is more Microsoft-centric than DELL. Dell has traditionally sold more Microsoft products in the server space, on a percentage basis, but is less entangled than CPQ in joint engineering with Microsoft. The recent moves with IBM reinforce this difference, as does DELL's decision to ship bundled Linux.