Dude Your Getting Perot Systems and Information Technology is Dead

Dell's acquisition of Perot Systems shows how precious little creativity there is today in information technology.

This morning, Dell announced a decision to acquire Perot Systems in an all cash deal.  The acquisition of Perot Systems is an effort to extend itself as a services business in order to sell Dell's lousy Chinese built equipment.  This is a strategy that has already been employed by IBM, Hewlett Packard and Cisco in order to extend beyond being producers of low margin hardware.

However, if you read between the lines, the deal really shows how little is going on in information technology.  The US's information leading technology companies that had driven innovation for decades can no longer easily extend the reach of their products through innovation and through driving new product cycles.  Instead they are forced to try to grow by getting into the service sector - a direction that would have been considered absurd just 4 or 5 short years ago.  And, when they make these transactions, the first word out of their mouth is "China" and the second word is "India" - words that should be considered embarassing for companies that fueled tremendous growth in the past through bringing innovation to every corner of this country.

The exception to the rule here is Apple.  It is an extraordinary company that is still innovating and bringing its products to entirely new sectors and new markets. 

But, aside from Apple the creativity is gone from the information technology area.   The revolution that began when Intel introduced the microprocessor in 1973 is reaching its end.  Creativity is moving from information technology towards clean technology - from computers and servers and software towards a better use of water and of electricity and of cleaner air. 

Jason Rodgers
Jason Rodgers: Jason Rodgers was an experienced research analyst for a major bank prior to retiring to run his own investment consultancy in beautiful Lihue, Hawaii. Jason contributed articles to BestCashCow from 2008 to 2014.

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