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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: WebDrone who wrote (5055)	4/24/1999 12:28:00 AM
From: chunmun	Respond to of 8219

I love IBM. It is the company to own for the next decade. I think we will see 225 before the spilt. Any guesses. All I can say is invest in this wonderful company, they are really amazing and I think all who own shares in this company are extremely lucky. Way to go IBM! You are the king!

To: WebDrone who wrote (5055)	4/24/1999 12:57:00 AM
From: J R KARY	Respond to of 8219

Web could it be leasing ? No wonder HP's Sales Reps were unimpressed Back to the future - HP wants a percent of customer revs already ! IBM had a leasing sales plan with a little gonad kicker for reps called a "charge back". Regardless of when the IBM system lease was sold , as it came off lease you were charged back the commission paid for selling it . Notice I left out the "you" in commission paid . It didn't matter if you had not been paid a sales commission , you inherited servicing the installed lease and "you as in U" were charged a negative commission when the lease was cancelled . Last I heard IBM's Sales reps were calling Amnesty International ;>) Now you can see why I want that (sales contest) boat owed to me . It's not the principle it's the money (hehehaw) . Jim K.

To: WebDrone who wrote (5055)	4/26/1999 12:30:00 PM
From: Arrow Hd.	Respond to of 8219

WebDrone, interesting post regarding HP's new sales model. IMHO, this is a terrible idea and will fail to achieve HP's goals for the following reasons. 1. Salespeople are a unique breed. They want to sell and install as much as possible and make as much as possible. They are not into strategy or role playing as a business development executive. Just sell baby, sell! To ask them to construct complex business development deals or worse, put the needed infrastructure behind them, raises the SG&A expense bar and creates a huge hit on sales productivity. Further, the average sales rep gets frustrated with the long sales cycle this encumbered deal takes. Bad for productivity, morale, and SG&A. 2. These deals have an elongated return on investment. If HP thinks the margins suck now due to rapid technology turns wait until they rely on this model that requires the same technology investment so that keep up with IBM, SUN, Wintel, etc. but the revenue is no longer lump sum purchase up front but an "annuity" stream from some outfit that doesnt yet have any earnings. The sum return from zero is still zero even with modern math. The equity stake has the same linear right as the annuity hallucination and if you acquire a company it is nothing more than an intercompany transfer. And you do not want a salesperson negotiating your acquisitions! 3. The upfront beta tests are always misleading since they pick the low hanging fruit for these "sure to succeed" situations. When the real deals come around they will be nasty, long term negotiations where HP is going to leave wearing a barrel. 4. I wouldnt sign up for anything an analyst thinks is a good move. How many analysts do you know who actually ran a business. Obviously, our friend over at Morgan Stanley doesnt know much. 5. The only way this strategy can be employed is through a corporate business development staff that has a macro view, is both strategic and tactical, has extensive negotiation skills and it is done on a "one off" basis as a special bid. Keep the reps trucking towards making quota the old fashioned way.