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To: PerryA who wrote (3787)	12/11/2001 10:56:55 PM
From: Jerome	Read Replies (1) \| Respond to of 4722

>>>Why is consolidation needed? <<< From what I have read, corporations want complete solutions and do not want to buy their technology piecemeal....all the way from consulting services to every piece of hardware and software. When pieces are purchased separately their intergration can be very costly and often not optimized. I think its Dell that keeps telling my business friends, "buy everything from us and we will make sure that it will compatible" This has been IBM's strength. Jerome

To: PerryA who wrote (3787)	12/11/2001 11:24:01 PM
From: Dave B	Respond to of 4722

Perry, Why is consolidation needed? Too many companies competing for market share (as opposed to profits). That was something of a rhetorical question. Your answer is correct in that we need fewer companies competing, but consolidation isn't the only way to achieve that. Generally, acquiring a company whose fortunes are on the decline is a bad idea. It may "consolidate" the industry, but better to just let it shrink and let the players who have more competitive models pick up the slack. In this case, there's no reason for anyone to acquire CPQ, just let it go. Dave