Hi flickerful.... interesting how that works.... IM gets downgraded and ends the day up, ( not complaining ; ) In the meantime only CPQ and Dell losing, ( 3% and 4% respectively ), the other box makers have added nicely, looks like the street doesn't like the deal for CPQ.
Just a couple of additional thoughts.
The competitive landscape is fierce... these guys will do whatever they have to circumvent financially supporting a competitor and conversely if possible adversely affect competition by action . I've lamented this phenomena in the past, while pundits suggest that when it comes to added income, competition doesn't have boundaries, IBM's swift and immediate public action has shown there is definable competitive relationships.
So CPQ buys these facilities which, as they exist are being utilized by only 50%, IBM ( with others, likely in hot pursuit ) are vacating, placing the facilities in less utilization. CPQ says that they do some 30% of Inacom's business, that's 30% of 50% utilization. I think they're digging themselves a big hole. IMO they will further offend their existing partners by having to aggressively push volume thru their newly acquired facilities. Mickey C. will have to aggressively compete against their own supporting VARs and Resellers to bring these sales inside. Sounds like a great plan doesn't it.
IMO CPQ has stepped over the line with this one, tantamount to declaring independence from the channel. Ingram will continue to be a valued player for CPQ and retain a most favored nation status but, where applicable they will earnestly and quietly, sub plant others in CPQs stead. Ingram's volume has to be a target in this scheme and for them it comes down to the question of providing a full range of options for those VARs and Resellers with an easy transition to IBM , HP and the others. I'm sure the channel guys are all salivating over the potential opportunities. The supporting cast that took CPQ to their number one position in the marketplace will not just quietly go away, IMO they are now, or soon will be competitors of CPQ, now that's a chilling thought. I further expect the competitive environment to present opportunities for other manufacturers to garner more of Ingram's ( et al's ) business, perhaps this is why all the other box makers did so well today.
From a personal perspective as a retail, store front, box builder I think I'll have fewer Compaq's to compete against. ; ))
Regards
Reseller |
