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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (55583)	4/11/1999 11:12:00 AM
From: accountclosed	Read Replies (1) \| Respond to of 132070

With all the additional receivables/incentives and inventory that a channel operation would entail, could they continue their balance sheet zero-book value act which makes all the ratios look so ripe? i suggest not without multiplying risk.

To: Knighty Tin who wrote (55583)	4/11/1999 12:01:00 PM
From: gbh	Read Replies (3) \| Respond to of 132070

The problem is, most channel players don't trust Dell. If they put Dell boxes into their customers' operations, next cycle Dell will be calling them directly giving them a better deal than they can get from the resellers. Michael, but the channel guys live with this risk by definition. Also, its not clear to me that DELL could initiate this subtrifuge <sic> since how would DELL actually know who the end customer is. Now if the actual customer decided to go direct, thats another story. But again, this is "way of life" for any reseller. As to the Dell analyst meeting, it was the most negative I've ever heard from this touty co. Gee, this surprises me <g>. They pretty guaranteed sequential top line and bottom line growth. This isn't CPQ management we're talking about. These guys have always been very upfront. Of course, up till now its been pretty easy to do so <g>. Gary