Sorry, Mr. Hemingway for butchering your title, and thanks Phil Fersht for the inspiration about Dell planning to spend $ 4 billion of hard earned equity to acquiring Perot Systems.
As Phil says “there isn't much overlap, there also isn't a lot of synergy. Why should Perot customers want to buy Dell equipment all of a sudden? Most CIOs today are looking to move away from hardware-centric IT delivery models, and onto more on-demand cloud computing models.”
As I wrote last year “Dell ,,,has not shown the ruthlessness to optimize the service chain (as it did its supply chain). What is the opportunity? To drive traditional outsourcing pricing from $ 3 a gb a month for storage to 20c that cloud computing models are showing.”
At best Perot will allow Dell to gain a toehold in verticals Perot is good at. At worst, it will distract Dell from the big services chain optimization opportunity.
