Article Abstract:
Large computer dealers are facing mammoth losses of business to the brash direct sellers who have done away with the pesky middleman. Inacom and MicroAge are going under and the big boys, IBM, Hewlett-Packard, Compaq Computer are selling straight to their largest customers. CDW Computer Centers, Insight Enterprises and PC Connection have seen revenues jump 38% in the last quarter by targeting small to medium-size businesses, a target group which will account for over half of all personal computer purchases this year. Mail-order dealers also profit from offering the Internet.
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Article Abstract:
Fujitsu Ltd. head of computer services Yuji Hirose says the company is shifting from the IBM to AOL model in its business strategy. Announcements of Web-based business partnerships with banks, brokers, and retailers this year have been part of the impetus behind an increase in share prices from 1,401 yen in March to 3,220 yen per share last week. Also, Fujitsu's @nifty service had 14 mil users at the end of 1998, and is anticipating hitting 18 mil by the end of 1999. America Online's subsidiary, AOL Japan Inc. claims 330,000 subscribers.
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America Online Inc. has announced its intention to invest $800 million in personal computer-maker Gateway Inc. As part of the deal, Gateway and AOL will promote each others products and services. Company representatives state that Gateway computers will be loaded with America Online's Internet access software and Gateway computers will be marketed on AOL. Additionally, AOL will take over the operation of Gateway's Internet access company, Gateway.net
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