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U.S. Approves IBM/Lenovo Sale
MartinB writes with the "Committee on Foreign Investment in the United States (CFIUS) review result: unanimous approval for the sale to go ahead, with no further external approvals needed. No compromises were required over the location of Lenovo facilities in sensitive research areas, nor were limits put on Lenovo's ability to sell PCs to U.S. agencies."
What will become of the beloved Thinkpads? Will Lenovo continue to maintain the same level of quality that IBM has?
More interestingly, I'd be interested to see if IBM started producing affordable powerpc laptops and desktops running Linux. It seems Microsoft can no longer wield the Windows tax against IBM.
Does this deal leave IBM free to persue building a new PC based on Cell Processor and/or PowerPC technology, instead of the increasingly less efficient x86? If so, selling off the trailing edge x86 business would just be a smart business move, wouldn't it?
I've abandoned my search for truth; now I'm just looking for some useful delusions.
Windows isn't really done, but this was my thought when IBM put their pc business up for sale. Back in the day, it was this group because of pressure from Microsoft that would put up internal ibm roadblocks to their own OS/2. I imagine they initially weren't that friendly to Linux, either. Dumping this low-margin business though has the added benefit of letting IBM focus on their hardware and services. If IBM wants to sell Linux, OS/400, Windows, etc, there's not much msft can do about it legally or otherwise now.
So, does this mean that IBM is finally out from under the Microsoft joint-development agreement, that dates back to the days of the original PC and PC-XT?
Chip H.
However, I also disagree that share price should be taken as the only metric of company success. Any single metric that becomes too dominant will imbalance things and have ultimately negative consequences. In this specific case, I think it's part of the general hollowing out of American industry and strengthening of Chinese industry--which mostly reminds me of what happened in America before the Civil War. The South became a militarily-strong, industrially-weak debtor.
From the more narrow perspective of IBM, my main concern is that this deal could weaken IBM's "empathy" for customers in lower-margin businesses. Unfortunately, the way the numbers work, most companies are average or below by any specific metric, which in this case means that most of IBM's corporate customers are involved in relatively low-margin businesses. IBM won't share that situation with them after this.
One more thing in the "other values" category. For example, one of IBM's other non-share-price values is "supporting diversity" by deliberately hiring many kinds of people. Well, I think that "supporting commodity computers" is also a value that was worth supporting and something that benefits a lot of people, even if the profits are slim. However, in IBM's specific case, all of the high-margin businesses depend on computers, so there's a strong and direct benefit from that support...
Freedom = (Meaningful - Coerced) Choice != (Speech | Beer^2), and sad sock puppets' bad mods avail them naught.
The IBM/Lenovo sale is IBM's strategy to sell past China's protectionist trade barriers. It's gotten wide support because it's probably unique in requiring the Chinese company to move some operations to the US, to allow IBM to use them to reach the Chinese market with the rest of their products and services. It's kind of odd how your pro-globalism post bashes people suspicious of IBM sending essential industry to China, but doesn't complain about those Chinese protectionist barriers. Is your "globalism" really just a cover for a culture war you prefer to actual free global trade?
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make install -not war