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To: Tae Spam Kim who wrote (61148)5/12/1999 7:56:00 PM
From: rudedog  Respond to of 97611
 
That is where the true profit growth and higer margins reside.

Please!!! The services business is at the median for CPQ - all of the high end profits have better margins. In 1998, Tandem sales grew more than service sales, and Tandem's margins are twice those in the service business.

Service growth is important for a variety of reasons but only as an adjunct to a diversified enterprise strategy.