|  |     DITTO!!!!  I wasn't there, but my customer, who is a pretty tough
    nut, was full of praise.  Coming from him, it was real shocking.
    Pleasing, but shocking.  He felt that it was very professionally
    done, that we were selling solutions, not just IRON. 
    
    ***WELL DONE*** to all involved.  Thanks for the positive PR, you've
    made my job a little easier.
    
    
    Patrick Soehl
    
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|  | 
From:	NAME: CHAMBERLAIN
	INITLS: GEORGE
	FUNC: FINANCE
	ADDR: MLO12-2/U48*
	TEL: 223-5305 <8562@DECMAIL@CORMTS@CORE>
To:	See Below
You should feel proud!
Message-class: DECMAIL-MS
From:	NAME: STEINKRAUSS
	INITLS: MARK
	FUNC: INVESTMENT RELATIONS
	ADDR: MSO/K10*
	TEL: 223-7182 <72326@DECMAIL@CORMTS@CORE>
Posted-date: 25-Sep-1987
Subject: DECWORLD & "WALL STREET"
To:	See Below
Several of you have asked about "Wall Street's" reaction to DECWORLD 
87.  To follow are a few brief comments gleaned from conversations 
Brad Allen and I had with the security analyst/money manager 
communities.  Hope you find them of interest.
1.  DECWORLD represented the largest gathering of security analysts 
    Digital has ever had.  Over 125 analysts visited DECWORLD during 
    its two weeks.
2.  Overall, as much of a positive reaction as we've ever had from the 
    group to any meeting/announcement.
3.  DECWORLD served to change the thinking of even the most cynical 
    analysts.  Digital is not just the logical alternative to IBM but 
    rather an obvious equal.
4.  The message of "the network at work" was obvious and well 
    received.  Jon Fram of Bear Stearns said he "got networking 
    religion late and will have to catch up."  Analysts increasingly 
    viewing the NETWORK AS THE COMPUTER.
5.  Analysts who have been extremely positive regarding Digital ... 
    (Dan Chertoff of Bernstein, Carol Muratore of Morgan Stanley, Marc 
    Schulman of Salomon Bros., John Dean of Montgomery, Bary Rosenberg 
    of Cowen, Steve Smith of Paine Webber, etc.) .... were in their
    glory.  It was as if their upbeat research reports on Digital were
    played out before their clients' and their eyes.
6.  Universally wonderful comments about Digital employees.  Every 
    analyst we talked with spoke of the enthusiasm and professionalism 
    of Digital people, be they demo people, registration people or 
    those who handled long lines or provided general information.  
    John Dean of Montgomery Securities talked with many people on the 
    floor who were new to Digital but not the industry.  He was very 
    impressed with the quality of the people and the breath of their 
    experience.  Recall that John spent 20 years with IBM.  Several 
    analysts mentioned that when they walked the floor they got the 
    pitch whether they wanted it or not.
7.  Susie Petersen of First Boston who maintains a cautious near-term 
    outlook for Digital, in a report dated 9/14 said:  "Now that the 
    stardust from DECWorld has settled, we remain highly impressed 
    with the conference's breadth and still cautious about Digital's 
    spending outlook for the first half of fiscal 1988.
    What we saw at DECWorld wasn't a happening; it was a siege.  
    Digital has progressed from a minicomputer vendor serving the 
    scientific crowd to a full-line information systems company 
    equally comfortable with corporate America.  The breadth of the 
    product exhibits -- publishing, medical, legal, financial 
    services, government, telecommunications -- were overwhelming and 
    could have been staged by only one other, highly Blue competitor.  
    When IBM claims it can't justify the cost, we point out that 
    Digital's $25 million party added over $1 billion to the firm's 
    market capitalization in two days!
    But Digital did more than just strut its product stuff at 
    DECWorld.  Digital is convinced that it has the one true faith:  
    networks of computers which distribute their processing power into 
    the hands of the people who use it.  This commitment to 
    "peer-to-peer" networking which links equals together rather than 
    IBM's "hierarchical" approach which maintains a central mainframe 
    with smaller computers communicating through the mainframe is  
    religion to the Digital employees I met in Boston.
    At the product introductions on Wednesday, when Ken Olsen was asked 
    what Digital would do with its $2.2 billion in cash, he answered: 
    "When the message finally gets across, we're going to need all the 
    cash we can get to handle the growth."  DECWorld was Digital's $25 
    million, sugar-coated way of beating that message of peer-to-peer 
    networking into us, even if we didn't want to hear it.
    We agree with Mr. Olsen that there is enormous opportunity for 
    Digital to leverage its emerging status as the other company 
    besides IBM a customer or supplier or software house has to do 
    business with into above-industry growth for the next decade.  Our 
    theme of caution remains focused on differentiating between the 
    short term and the long term; in the short term, Digital needs to 
    build a broader foundation of people and plant to complete its 
    transition from minicomputer star to global information galaxy of 
    the 1990s.
    If the necessity of these costs were fully reflected in the 
    stock price, we wouldn't worry about them, either.  However, we 
    believe in the excitement of the QEII and acres of product 
    demonstrations, expectations for Digital's next four quarters 
    might have risen too high.  This is worrisome for a stock which is 
    over 85% institutionally owned and doesn't pay a dividend.
    We've said it before, but DECWorld further substantiated our view: 
    the actions that Digital is taking to build a legend do not 
    coincide with the goal of short-term earnings maximization."
8.  Jean Orr, Drexel Burnham Lambert, in a report dated 9/15:
    "With the DECWorld'87 trade exposition, heavy media exposure, and 
    a large number of new product introductions, together with gains 
    in revenues and earnings while the industry struggles and a 
    clearly enunciated and understood approach to computing, DIGITAL 
    IS THE TALK OF THE INDUSTRY.  Competitors are comparing themselves 
    with Digital at least as much as IBM these days and, in many 
    cases, the comparision with IBM is more favorable that the 
    comparision with DEC.
    If an ideal computer system for an entire company is described, 
    given current technology and consideration of costs, and then 
    compared with what is available in the market today, Digital's 
    product line comes out as close as any supplier to this ideal 
    system.  The company's computer system is clearly closer to the 
    ideal than those of IBM and virtually every other competitor while 
    many of those companies are working toward a more DEC-like 
    solution.  Digital is recognized as the number two vendor in the 
    industry and as the leader in terms of distributed data 
    processing, compatible computers throughtout the product line and 
    the ability to network.
    In addition to the momentum that DEC is currently exhibiting, the 
    company is strongly positioned for the next several years.  Users 
    are moving to distributed data processing, more networking and 
    communicaton between various computers within the organization and 
    fewer (ideally none) conversions from one operating system to 
    another.  WE BELIEVE THAT DIGITAL WILL GROW 20% PER YEAR OVER THE
    NEXT FIVE YEARS."
9.  Finally, even the security analysts, used to life in the fast lane 
    as they are, were suitably impressed with the scope and logistics 
    of DECWORLD.  By their very nature, analysts seek to control 
    situations in which they are an active player.  At DECWORLD, they 
    were just another player.
Distribution List:  (DELETED)
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