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November 17, 2008

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marc farley

Dru,

I don't think Sun is a very good fit for Dell. The integration of technologies and cultural clash would be almost impossible to manage.

Drue Reeves

Hi Marc,

Good to see you back out here again. What's your new blog?

Sun and Dell culture clash is definitely a problem, but so was Compaq and DEC, so was Compaq and HP. Compaq was very much like Dell, HP and DEC were not. Eventually, both companies grew toward each other, but it took strong leadership to make it happen (in the case of HP and Compaq, the leadership came from the business unit leaders). Having lived through both the CPQ/DEC and CPQ/HP mergers I can tell you first hand that it wasn't easy, and not popular, but it was definitely the right move. Where would HP or Compaq be today if they had not made that move? Dell must consider the same decision. Dell takes pride in reinventing itself when the market changes....well, now is the time for reinvention....in a much more dramatic way.

BTW -- Here are some other acquisitions Dell could make:

Unisys: A services company they are already partnered with.
Accenture: The last of the large consulting Mohicans.
Symantec: Would definitely help Dell in several areas including management, storage, backup as a services, security, etc.

One could argue that a services purchase is moot because everyone who is left (PerotSystems, Unisys, CSC, Accenture) has to work with Dell because the other houses (EDS, PWC) are tied to hardware vendors (HP, IBM).

Symantec may be too expensive.

Is Sun too much of a culture clash? Perhaps, but Dell has to do something big. Small acquisitions and organic growth may keep them from achieving that 80 million dollar goal (remember that?) for years (or ever).

Tarry Singh

I have long written that other firms, not necessarily HW vendors ut also coming from the SI angle, should focus on completing the circle and focusing on more of a one-stop-shop model with globally deliverable converged services model. This however was about Cisco's move to acquire EMC, which has the same challenges. Its global strategy is weak, it's portfolio is large and it needs some trimming for sure(http://tarrysingh.blogspot.com/2008/08/m-real-time-analysis-why-would-cisco.html)

HP is definitely following the path to go after some. IBM is the leader in many quadrants (itsg, itsm, gsc etc) and soon I expect to see some new, in-organic mergers coming from other industries.

Coming to Dell. It has several options, it's move to cannibalize the SME segment will work, its push up to the enterprise market will have to call for some strategic merger. Sun, unfortunately is not one of them. Scott has been trying to sell Sun to Oracle and has done his best. Jonathan is under tremendous pressure from their VAR ecosystem.

So, Sun is stuck in the middle, Dell is more on a centripetal path and will have to look for other mergers. CSC, Accenture may be good from the services perspective.

Symantec is expensive but ripe. I do predict that Symantec will eventually be bought by MSFT.

Do remember one thing: Its all a Data Center rush and many vendors are changing their roles like chameleon. I am expecting a lot of disruptive interventionism from players outside the IT industry as well.

/Tarry

Used/Refurbished laptops

I have been reading about how the laptops have been delayed going back......what a couple of months? But no one has said anything about the desktops w/LCD monitors. You got to be kidding when you dont have one of the most popular items people want with there desktop. I ordered mine on 8-9-07, delayed to 8-20-07, delayed to 8-27-08 and now currently delayed to 9-4-07. When I woke up this morning I said to my wife "How much do you want to bet I get an e-mail from Dell that the PC will be delayed AGAIN?" Then when I called in to keep my PC on backorder, I wanted answers to my questions and the lady must of gotten annoyed with my questions and handed her headset to the person next to her. That person was VERY RUDE!!!! I ended up hanging up on her. I bought my first computer from Dell in '98, next one in '03, and now '07, but may not get it until '08.

used computers

I don't see a even single clue of acquiring Sun by Dell, As Dell has economical crisis and i don't think Dell like to induce itself with yet another issue by acquiring Sun.

cheap computers

As Compaq was decline in the marketing and it was almost bankrupted but merging itself to Hp it had made the best decision now both work together and doing good in marketing.

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the Compaq brand lacked enterprise credibility; they needed to acquire the technology and talent necessary to compete, rather than building it internally over several years.

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