So, CPQ is now #1 in PC, #1 in enterprise server business, promote aggressively in the NT
business, storage business, and growing aggressively in the communication business. So, do you still count CPQ as a pure computer company? My calculation says the total revenues of
CPQ will grow to 70 B by year 2002 to 2003.
CPQ's merger with DEC, CPQ gained DEC's large market shares of enterprise, DEC is
known everywhere in the world, with DEC's name and CPQ's managing skill will push CPQ's business into another level. So, the immediate gain for CPQ is the market shares of DEC
enterprise business, while DELL needs to start from the zero ground. For the future gain of CPQ by buying DEC is DEC's richness in technology, which means new products, the network, the storage, the Alpha, software ...etc, This will guarantee CPQ's future success.
So, 9 Billion for DEC is really a steal.
What if CPQ did not buy DEC ? Well CPQ will end up like DELL and find that business
head to the very dead end in a few years, PC will be a very competitive business in the future
and to survive and succeed, you have to balance , tha is t diversify your business into every
segment, which means diversification in product lines, and each product are related to eachother, which means PC is related to storage, is related to monitor, is related to communication, ...etc, you offer total solutions, and which means reduce the cost for your customers. You also have to pursue business in different profit segments, not just in low margin high volume business like PC ( When sell pc, you are not just sell PC alone, now adays, PC needs to communicate with the outside world, it is no longer a single isolated system, which means you are not just selling PCs, you are also selling many other related
products) but high margin enterprise computation business. For all those diversifications,
high end high profit business segments, CPQ need DEC, DEC also need CPQ with strong
financial support to push all its super products into the market for profit and revenues.
For DELL, I really do not know what will it be in a few years if it continues follow it
current path. I really do not know what weapons DELL have to continue grow its business
in the nex 10 to 20 years. However , I do know CPQ is well prepared for the future challenge
. My prediction is in the next 10 years , there will be three computer companies (if you want
to call them computer companies) left, which are CPQ, HWP, IBM . For DELL, I do not see
it on the horizon !!! I am sorry for DELL's share holder. |
