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Why I'm Exiting Cisco

Good move to avoid CSCO for now.

CSCO's strategy to enter the server market is a bad strategy. The odds of success are low. Cloud/grid computing are not disruptive technologies. It is unlikely CSCO has any technological competitive advantage. It would have been a better strategy to follow acquisition model instead of building it. In the past CSCO was successful by acquiring companies for its technology products and integrating it well with its business model. Now they have invited its competitors to sharply focus on execution in CSCO’s core business, while they will be mired with what they have bit.

Potential Acquirers for Sun: Oracle or Cisco?

SUN acquisition has to be looked at two diametrically opposite lights. The dominant reason IBM, HPQ and maybe even DELL looks at SUN is from the efficiency standpoint. By acquiring SUN they get to increase the customer base, bring management discipline, cut cost and maybe monetize under utilized product areas, whereas the reason CSCO and ORCL is to create/assemble a competing alternative to the IBM and HPQ. In the second case SUN is core to the strategy and one of many acquisitions to follow. If neither is the case then SUN will join the heavenly bodies such as Wang, Prime, Data General, DEC and most recently SGI.

Potential Acquirers for Sun: Oracle or Cisco?

Gone are the big margin business. With BPO, SAS and ASP model there is tremendous pressure on margins. Hence IBM and HP have built the one-stop business model. Oracle is not immune to the trend. One quick way to get there is build H/W portfolio by acquiring SUN and potentially others like Unisys and DELL. Oracle already has good consulting service business. Viola you have a one-stop shop.

IBM Wants to Buy Sun - Why?

It totally makes sense. SUN's problem is immature management team. IBM should be under no illusion that they can cut cost easily even though tremendous opportunity exists. SUN's culture is somewhat suicidal; they would rather die instead of making the tough business decision. Tremendous synergistic opportunity does exist at the same time blocking CISCO is strategic. In fact I would not be surprised if CISCO makes counter offer.

The 15 Most Cash Rich Companies

PFE cash is committed to IRS and WYTH purchase.

Has Google Declared War on Enterprise IT?

Not only have they declared war they have the moral code and the arsenals to win. The technology to deliver cloud computing exists today. Google is not constrained like legacy tech companies who have to protect their current revenue stream. Google can bulldoze its offering and transform the industry to true utility computing leaving few tech carcasses on the way side.

Where the Obama Stimulus Plan Helps Tech

Yep, we will modernize schools, but still the kids won't be able to speak or write correct and complete sentence in English, not know the history, trail rest of the work in arithmetic. But we will have broadband to every school supported by offshore engineers.

Go IBM..