QUANTUM Message Board - Msg: 3495433

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Technology Stocks : QUANTUM

QNTM 9.940

-0.6%

Dec 5 3:59 PM EST

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To: Frodo Baxter who wrote (7378)	2/21/1998 4:53:00 PM
From: Hungry Investor	Read Replies (2) of 9124

Lawrence, Just to add in a little... I think there are merits to both of what you and Stitch are saying (how diplomatic of me). Stitch's example of IBM might be a great one (except noone knows the real numbers). However I must agree to some extent that the use of a vertically integrated system often results in poor performance due to ineffective communications (everyone is operating as there own profit center) and ineffective coordination (everyone wants to be the boss). If the integrated system is not managed closely (more costs), then the whole may not be cost effective, work well, or provide for rapid product development. I believe that you actually havefar greater control over outside companies than you do under most veritcally arranged companies. I have seen several companies go to some sort of vertical integration, only to do an overall cost and flexibility analysis and dump the whole thing. I wonder why outsourcing is so popular? Do what you do best and buy the rest. My 2 cents, Scott.

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