>>CPQ could easily fall into a trap of being the
"low cost provider" with Dell being the natural upgrade. The 90% Dell
growth YOY quote tends to confirm that. Instead of flying back and
forth from Mass, CPQ needs to concentrate on reputation
enhancement for the upgrades. If not, <1k yields less, tends to cause
line problems in production due to savings on parts/labor, which
causes quality gap, with end result of lower margins, reduced
research, and EPS.
To get an accurate picture, you must think of CPQ in the
full enterprise spectrum. Dell does not play there.
HP and IBM do play there. <Mohan, your cue, enter, stage
right<gg>>
You cannot make a reasonable analysis of CPQ without this
perspective. |
