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To: Alan Hume who wrote (7376)	2/21/1998 3:04:00 PM
From: Stitch	Read Replies (1) \| Respond to of 9124

Hi Alan; Thanks for the response, hope your trip went well. <<For starters, vendors are much more attentive to their customers whims than those from in-house.>> Even subjectively I can't agree here. Objectively its clear which organization will ultimately be more committed. All of economics and management discipline suggest it so. <<It is very unlikely that the in-house resources are going to be leading edge at any one time for all components.>> By all components I assume you mean heads/media. At least those are the more critical components. I agree that in-house orgs must be competitive. But I can't find the logic that suggest they cannot be. I can find an example that says they can. IBM. <<By not being vertically integrated, you can far quicker adapt other companies advancements into your design, save a whole bunch of money too,>> Huh? Why quicker? And how can you save money by paying 30% margins to buy parts to assemble a product you sell at 15% margins (or no margin at all more recently)? And if you really want to adapt other companies designs, just go buy them. Thats what Seagate did to get Conner Media. (Conner Media Div. was $800 M of the $1.2 B valuation done by Solomon for the merger/acquistion by Seagate and is the real reason Seagate did the deal). <<AND avoid all the political and philosophical inter department bitching. Believe me, the latter costs an awful lot of time>> Carry that argument to an extreme for a moment and we will have 10,000 companies to ship a product because no one can get along with each other. Doesn't really hold water does it? All the above respectfully submitted for your rejoinder. Best, Stitch