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- Xref: sparky comp.os.os2.misc:39839 comp.os.os2.advocacy:10564
- Newsgroups: comp.os.os2.misc,comp.os.os2.advocacy
- Path: sparky!uunet!sequent!muncher.sequent.com!furballs
- From: furballs@sequent.com (Paul Penrod)
- Subject: Re: Future of OS/2 and IBM????????????
- Message-ID: <1992Dec18.035926.1900@sequent.com>
- Sender: usenet@sequent.com (usenet )
- Nntp-Posting-Host: crg8.sequent.com
- Organization: Sequent Computer Systems, Inc.
- References: <1992Dec15.210437.934@gn.ecn.purdue.edu> <1992Dec16.072137.28867@sequent.com> <1992Dec16.152535.12204@jupiter.sun.csd.unb.ca>
- Date: Fri, 18 Dec 92 03:59:26 GMT
- Lines: 77
-
- In article <1992Dec16.152535.12204@jupiter.sun.csd.unb.ca> hwhalen@jupiter.sun.csd.unb.ca (Hugh Whalen) writes:
- >In article <1992Dec16.072137.28867@sequent.com> furballs@sequent.com (Paul Penrod) writes:
- >>In article <1992Dec15.210437.934@gn.ecn.purdue.edu> ashwath@gn.ecn.purdue.edu (Ashwath Ram) writes:
- >
- >[Stuff about IBM laying off 25,000 people deleted]
- >
- >>
- >>I think it would be prudent to ask the question as to where the
- >>cuts are coming from. Remember, IBM has started decentralizing it's
- >>busineses and while the PC products Division may be going great
- >>guns, their mainframe division may be suffering terribly, so you
- >>might find the cuts coming from a source that has little to no
- >>impact on the product (OS/2) that you are currently using. Also,
- >>IBM is among the most conservative of the blue chip stock companies
- >>and has long earned it's reputation as a stable commodity in the
- >
- >Ahem .... stable? I believe that around 1987 IBM stock was trading at
- >approximately $178 per share. Yesterday it was trading at $56 per
- >share. God help us if this is stability. :)
- >
-
- Yes, stable. You obviously don't play the stock market with
- professional investors or you would realize that stock price is not
- relavent, unless you are going short term. DIVIDENDS are the
- stability. And, IBM earned it's BLUE CHIP status by producing
- DIVIDENDS that are, up till now, consistently better than the
- average.
-
- >>volatile stock market. This implies that they have planned for this
- >>and are trimming the fat from the company to be come more
- >>competative.
- >>
- >>While the numbers are gargantuan as compared to someone like
- >>Borland or Microsoft, it represents a much smaller percentage of
- >>IBM as a whole than Microsoft. I would not worry about OS/2 support
- >>suffering. Right now, it's becoming a cash cow for them and they
- > ^^^^^^^^
- >
- >Cash cow? I don't think so. The most optimistic numbers I've heard are
- >2 million units sold. Lots went out at what ....$49. Others have gone
- >to retail outlets and since the retail outlets have to make a profit
- >the full price of these units did not go to IBM. Subtract costs for
- >disks, manuals, suppport!!!!, bug fixes!!!!, shipping, order taking,
- >advertising, beta testing, etc. and there is no way that this product
- >*at this time* is a cash cow. If IBM got an average of $50 per unit
- >sold then they received at most $100,000,000 from OS/2 sales. This is
- >not much in a company that has over $50,000,000,000 in sales. It is at
- >most .2% of their sales.
- >
- Think again. IBM makes a large portion of it's money on hardware
- and service. They could give away the OS for all intents and
- purposes, so long as they get the service contracts and sell
- hardware. That's why their called International Business MACHINES.
-
- >
- >>have announced plans to integrate it into their other system
- >>platform. As long as people continue to buy OS/2, IBM will continue
- >>to promote it's growth and useability.
- >
- >Maybe, in fact, probably .... but more as a matter of strategy and ego
- >rather than the dubious fact that it's a cash cow.
- >
-
- Old marketing strategy they never teach in college:
-
- "I'll give you the razor, so long as I can sell you the blades..."
-
- One last thing. According to the sattelite news service, IBM is
- having problems producing enough OS/2 packages to sell and bundle
- with their PS/2 hardware, which is selling a record clip. Yes, I
- would call that a cash cow.
-
- --
- --------------------------------------------------------------------
- Bureaucracy: noun, plural - Bureaucracies.
- The process of turning energy into solid waste.
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