My understanding:
The dot-coms never were a large percentage of their business -- most of their sales are to big, well established companies. Their advertising slogan wasn't "become a dot com," it was "dot com your BUSINESS." Remember "clicks and MORTAR?" I think the Internet is expanding even now, despite the public's perception. Funding for business in general doesn't rely on VC. Of course, in a general business slump they'll suffer, but unless you think the slump will continue forever, then, as I assert, things will turn around eventually -- that's almost a tautology.
That also answers your second question. Business will buy their kit, just as they have in the past.
And their prices are competitive. The US-III is on the early part of the curve, so "aging" is a mischaracterization. They're not laying off as far as I know, although they are trying to stay especially lean, and are moving people around. In fact, in the CC just yesterday, they said they were hiring. I haven't heard of any staff retention problems. In fact, by holding on to people (unlike their peers) they're probably reinforcing their reputation as a good place to work. That can only help in the long run.
They're different from SGI in that they're not trying to recast themselves as a Wintel box maker, instead staying true to the business that got them where they are.
I doubt they owe $3+B/quarter of sales to OPM. Maybe YOU should come up with some facts.
All JMHO. Do your own due diligence and form your own conclusions.
Charles Tutt (TM) |
