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

To: kemble s. matter who wrote (124921)	5/15/1999 4:37:00 PM
From: Sig	Read Replies (1) \| Respond to of 176387

Kemble ( the road building crew keeps cutting our phone lines so I only have intermittent contact with the Mother-ship)) A few comments on the IBM/Dell deal. IMO this arrangement will be accretive to both companies. Dell's recent new advertising campaign shows a desire for more widespread recognition and associating with IBM helps achieve that. The first benefit went to IBM, at least in stock price this week.(G). I believe Dell has shared with IBM their on-line experience and the belief in value of giving customers access to their equipment configurations and software updates which will permit IBM to reduce overall costs to customers. Big Blue will be around for a long time, there is enough work for everybody in this growing field except for those who persist in proprietary actions or building equipment that only their own people can maintain. It is customary with Dell to say very little until about new activities until something is a done deal( how about that Tennessee site ??, very few news comments and the already the negotiations are finished). So we have not yet heard from Dell on benefits from the IBM association (or Gigabuys ) I think we will hear something on Tuesday about those, and Dell should be getting a notable saving on IBM components and especially the hard drives because clusters of 120 or more are used in the data storage units. Its only my guess that Dell will use or move to the IBM drives, but something equivalent will happen which in conjunction with the saving in royalty payments will reduce Dell's overall component costs and assist the profit margins. The forthcoming price reduction on Intc Pentium 111's can immediately be passed on by Dell, but Cpq as usual , will have to reduce prices on finished goods in the channel to remain competitive. So the story remains unchanged, you can't afford not to do business with Dell. (just trying to summarize what others have said here) BTW I bgt some IBM Fri, the first time ever-buy high-sell higher(G) Sig