Combine it with the announcement that they are moving into the blade server space with their California offerings and it starts to look like these are bets against the recession by diversifying the portfolio. Thy'll have to go head to head against companies like IBM, Sun and so on. So the product they are going to offer better be good. Not only that, to be able to break into existing market they'll have to offer very clear differentiating features on their products. Interestingly IBM seems to be bent on acquiring Sun for a price of somewhere between $6.5 to $8.x billions!
Both are growth areas despite the recession. Particularly the video segment, the video share segment is growing hugely. Servers also should be growing. There's speculation Cisco is interested in personal/home video conferencing. Let's see how all this plays out!
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Thanks so much!
This deals reminds me of Skype/Ebay deal. Chambers likely does not understand the thin margins and lack of loyalty in the consumer space. I cannot imagine that the software used by Pure is too complicated to be replicated by a 16 year old Bangalore resident is 3 days.
Does Chambers not anticipate that most phones will have this feature? Perhaps he is thinking of a Pure phone. But, he would be better off buying PALM.
http://www.beaconintegration.com/
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