[Info-vax] Life after Digital

Arne Vajhøj arne at vajhoej.dk
Mon Oct 26 23:08:21 EDT 2009


JF Mezei wrote:
> Arne Vajhøj wrote:
>> The most relevant point is that there are no reason to complain
>> over HP doing it.
> 
> I disagree.
> 
> The "maximise profits" tactics used by HP are similar to that taken by
> other "old" companies who are running out of new ideas and must resort
> to extracting more money from existing customers to retain good ratings
> with the Wall Street Casino Analysts.
> 
> We should all know here that "milking customers for more money" can only
> work so long, after which the company dies. When a new entrant comes in
> with a newer product and no "milk the customer", he risks taking over
> the market and killing the old company.
> 
>> But maximizing present value of all future profit is usually considered
>> good behavior.
> 
> In the case of VMS, HP has done the opposite. Upon in heriting VMS from
> Compaq, HP had a valuable asset whichg it chose not to leverage. When
> you buy a company, it is usually because you think you can fix its
> problems and thus increase its value.
> 
> HP chose to NOT fix the problems of VMS (lack of marketing) and has
> allowed VMS to be relegated to "for the installed base only" and
> allowing VMS to wither away bit by bit without any attempt to fix it.
> This is not "maximizing present value for future profit", it is the
> opposite.

2002 was very very late to do something.

It is far from given that other directions for VMS would generate
more profit.

HP do make money. A lot of money.

Arne



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