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

To: edamo who wrote (115926)	4/10/1999 4:53:00 PM
From: jbn3	Read Replies (3) \| Respond to of 176387

Ed, more re DELL and IBM... Thanks for the comments. I did not say it couldn't be done, or that it wouldn't be done. Some folks on the DELL thread seem to think that it will be relatively painless, merely consist of Gerstner waving a magic wand and saying the magic words. And my point was simply... "Ain't going to happen that way". IMO, there is going to be terrific resistance and corporate infighting at IBM. Both of the examples you cited, General Electric and Westinghouse, are excellent examples for my point as well. I'm fairly confident that Gerstner would like to move in that direction, but he is going to face a lot of opposition from the officers, board of directors, employees and shareholders--all of whom he is going to have to convince. And he will have to give the Group a chance to get its collective act together. Take another look at the link I posted. You can read between the lines and see the corporate lines being drawn, Gerstner on one side, and Thomas on the other. I anticipate a continuing market share encroachment by DELL. And I think that some sort of arrangement will happen, because it makes economic sense for both companies. And I also think that DELL may end up hiring a fair number of IBM employees, which might even be part of such an agreement. But I truly don't think it will happen this year, and I doubt that it will happen until the end of 2000, if for no other reason than DELL has not yet established production facilities to smoothly pick up the additional load. DELL management is not going to accept that responsibility until they are ready to deliver on any agreement they might make. Nothing would hurt DELL more than to make such an agreement, then fall on its face and default. So, I would look for some sort of announcement after DELL's newly announced production facilities come on line. I'm guessing 5-8 quarters out. I may be wrong, but that's my take. Dellish, 3.