Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Key West who wrote (59864)	4/25/1999 2:50:00 PM
From: rudedog	Read Replies (1) \| Respond to of 97611

gene - what's wrong with being 100% dependant on PC business Nothing, especially when your whole model is geared to make that work - that's why I am a DELL investor. But DELL will have a much harder time making that work in enterprise systems - their "virtual company" approach is interesting but unproven. You are restating my point - DELL is focused on the PC business and they will live or die by their success with that model, at least for the next few years. CPQ needs to solve a different problem. The comparison of CPQ's business with DELL's, and especially the assumption that CPQ needs to be like DELL, is a mistake IMO. It was a mistake for CPQ management to get distracted by this issue and it is misleading for investors to keep comparing the two companies in these terms. As you know, I have been consistent on this point for at least the last 2 years. Comparing CPQ and DELL through the lens of DELL's business misses most of the potential of CPQ.

To: Key West who wrote (59864)	4/26/1999 9:41:00 AM
From: fooledalot	Read Replies (2) \| Respond to of 97611

gene, As I have been reading everyone's wisdom over who is better than who etc. I have been somewhat puzzled by some of the discussions relative to the absolutely "correct" distribution strategy for the computer business. When everyone (none of whom have likely run a company, or significant marketing group, obviously) continually claims that CPQ should go to a pure direct model, citing all of the wonderful growth that DELL has accomplished, I become somewhat puzzled. Granted, DELL has done an excellent job growing their business niche through their direct means, but your words tell quite a bit, "....when your direct model works best, when you only have 8% of global market...." If a purely direct model is sooooo good, why does DELL only have 8% of the global market?? Why would the world's leader be satisfied with reducing their worldwide market share to 8%? Just something I have been curious about for some time. Regards, f