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Dell: The Web as secret weapon

PC maker sees 'Net as way to cut support costs, increase sales

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New York - Michael Dell today predicted that within a couple years, half his company's sales will come from Web-based purchases - up from a third today.

In a keynote at the Fall '97 Internet World today, Dell said that beyond proving a great way to sell computers, the Web also lets Dell Computer Corp. dramatically lower its support costs - and boost service at the same time.

He said a key attraction for the 20,000 or so people who already visit the Dell Web site are roughly 80,000 pages of documentation it now houses. [Dell pic]

"This marks an evolutionary shift in the way products are sold," Dell said. "We're eliminating the storefront: no stores, no real estate, no overhead."

Dell spent much of his brief 20-minute keynote dispelling Internet myths, including that the 'Net is limited to marketing and simple transactions, and that it will be a level competitive playing field.

Dell said the company is constantly looking for opportunities to move from storefronts and phone centers to Web-enabled desktops.

"Eight dollars is saved every time a customer goes online instead of getting on the phone," Dell said. "And customers are 40% more likely to buy if they come online."

Dell said it is critical to make the Web a fundamental part of a corporate sales and support strategy, rather than treating it as an afterthough.

Dell declined to get drawn into the battle between NetPCs pushed by Microsoft and Intel and Network Computers pushed by other vendors. "We're into managed PCs," where the company decides what to put on a desktop, he said.


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