Bob, I think many of us have some of these worries, but at
the same time I think CPQ knows what they're doing here
and why. Let's hope they execute it well, but beyond
that perennial concern (esp. in something of this size),
I don't believe this is in any way like the Novell UNIX
deal:
Item. The Tandem acquisition, though not nearly so service
intensive, presented integration of a large field service
organization. This process is proceeding well, I think.
Item. CPQ needs a better field service organization for
their existing product lines to sell into the high-end
corporate markets. As we've been battering back and forth
here today, this is tremendously expensive to build from
scratch, and (as at least I've claimed) this acquisition
avoids the dissipation of resources from doing so in
competition with DEC. DEC can supply this. If it's too
expensive to lick 'em, buy 'em.
Item. The Alpha and its potential for conflict now seems
under control. CPQ stands to gain royalties. INTC will
have a much tougher time retiring the Alpha if that was
there plan (something I've suspected for no concrete reason
other than my naturally suspicious nature--damn thing was
just too fast for comfort).
I remain concerned about the potential high cost of large
layoffs. But I'm willing to believe CPQ financial people
can see that problem and account for it.
Regards,
Spots |
