Sep
28
Start Your Engines!
UPDATED
Photo courtesy GM
ECOTEC 2.0L Supercharged
There is likely, in our judgment, to be a huge similarity between the computer industry and the automobile industry, starting now and stretching out over the next ten years or so:
1. IBM "owned" the computer industry when mainframes were essentially the only machines for computation.
2. Over time they were disintermediated by the PC platform and the Unix platform. IBM did not want to get into "low cost stuff," when their principal business was selling $1 million+ machines with 85% gross margins. They finally did, but only after their share of the overall computer industry had drifted down to about 13%. We know the rest of the story.
3.
Photo courtesy GM
ECOTEC 2.0L Supercharged
There is likely, in our judgment, to be a huge similarity between the computer industry and the automobile industry, starting now and stretching out over the next ten years or so:
1. IBM "owned" the computer industry when mainframes were essentially the only machines for computation.
2. Over time they were disintermediated by the PC platform and the Unix platform. IBM did not want to get into "low cost stuff," when their principal business was selling $1 million+ machines with 85% gross margins. They finally did, but only after their share of the overall computer industry had drifted down to about 13%. We know the rest of the story.
3.