Duker;
SEG fundamentals, you do have a good sense of humor. Gave me a laugh. As in all business deals, the devil is in the details, which we don't have. Sometimes, you have to get into bed with the devil, in order, to survive in business. Remember, these guys are playing for global markets and no one is more global than IBM. Even the Russians and Chinese use their mainframes. Here's the scenario, IBM decides to put its storage business out to bid. They have absolute control over most of it because their systems are proprietary. No one can become compatible without their OK. EMC agrees to buy the storage business by going into a long term deal for IBM's components and patent right licensing. They need to assure themselves of long term future business. Dell did the same thing in the PC market. Now everything Dell is going to be IBM compatible in the business market. It's a great coup for both companies and of course, IBM uses its dominance to leverage two great deals for its components business. They started up the components business a year or two ago? Now its worth what? 20-30 billion to them? That's the kind of business that interests IBM. Its like GE is the largest fleet owner of commercial aircraft in the world through their leasing division and they also have the biggest jet engine business in the world. Who do you think buys their jet engines? Boeing. Buy our engines or we make financing the planes expensive? They have driven everyone but AirBus and Pratt & Whitney out of the business and I think Pratt sold out recently. This isn't personal, its money! Like the mob hit man, "Sorry, its not personal".
Like Apple gets into bed with Microsoft when Jobs come back to Apple. They needed Microsoft's Office software compatible with MAC OS if they were to have any chance in the business market. Remember, at that time software vendors were dropping Apple OS titles. I thought I would never see Jobs and Gates in the same room, let alone, making a deal and Gates buys $150 million worth of Apple stock to prop it up. That was a mind blower. When big money is at stake conspiracy is the normal state of affairs!
PHOTOMAN |
