Chapter 500: 500

It is estimated that Frank Cary was still worried about his gaffe when he was scared to leave by Gao Xian's high price, and finally joked: "Sir Gao's successful acquisition of Xiangjiang land should be the largest acquisition in the world this year. Why, sir Gao has passed the addiction of 'buying' and wants to set another world record in 'selling'? You know, when IBM developed the mainframe computer system360, it invested about US $5 billion."

Although there were differences between the two sides, the atmosphere of the talks was still very friendly, so Gao Xian explained kindly, "frank, I think there are some key points that need to be analyzed openly and thoroughly."

"First of all, IBM's acquisition of Huanyu computer company has not only obtained the best personal computer, but also obtained a complete set of systems that are most likely to become the standard of the personal computer industry, thus occupying the dominant position in the personal computer market."

"Now we don't have to rush to argue about this. It's not too late to have a detailed exchange after the visit."

Seeing Frank Cary nodding in agreement, Gao Xian continued: "secondly, I have no doubt that IBM can also develop personal computers. After all, IBM's strong technical heritage is well recognized."

Gao Xian affirmed IBM very seriously, which made Frank Cary nod proudly again and said, "you haven't been dazzled by greed."

However, Gao Xian's next words quickly dissipated Frank Cary's sense of superiority.

"Although IBM can certainly develop personal computers, it is difficult to determine how long it will take for new products to go on the market and whether they can be recognized by the market." Gao Xian looked at Frank Cary and smiled, "This is caused by the big enterprise disease that is not unique to IBM. Otherwise, the CEO of IBM who manages everything every day doesn't have to come all the way to Xiangjiang."

Without waiting for Frank Cary to respond, Gao Xian then analyzed: "in the final analysis, IBM has been doing business with Zhengfu and large enterprises for more than ten years. A set of products often cost millions of dollars. For example, a few thousand dollars of cheap products such as personal computers, let alone whether IBM engineers have the motivation to do it, I'm afraid it's difficult to sort out the clue for a while."

"After all, personal computers are mainly aimed at the needs of individual families and small and medium-sized enterprises, which are very different from Zhengfu and large enterprises. Furthermore, in terms of pricing system and market operation, it is impossible to copy with existing experience."

"For example, in the field of mainframe computers, IBM has completed a product life cycle, such as upgrading from system360 to system370, about ten years; while the development of personal computers is changing with each passing day. Basically, it evolves to the next generation in two years. I'm afraid it's a little difficult for IBM to adapt to this rhythm."

Listening to Gao Xian's eloquence, Frank Cary even began to doubt whether he had been arranged by the other party as a commercial spy. How could he be so heartbroken?

In fact, after seeing the popularity of Huanyu's personal computers running spreadsheet programs, Frank Cary realized that personal computers are not toys and their future prospects are incalculable, so he ordered his managers to pay attention to them. Unfortunately, IBM is too big, bureaucracy is deep-rooted, and it is already in the "comfort zone" of mainframe computers He stayed so long that he was slow to respond to new things from top to bottom. Even his CEO was powerless.

Frank Cary, who was unwilling, angrily retorted: "Sir Gao compares the life cycle of personal computers and mainframe computers. It is pure layman's words. How powerful are the functions of mainframe computers? The corresponding investment is not cheap. How can one generation be eliminated in just two years!"

In fact, if Frank Cary didn't say so, he could be stronger than others, but he was talkative. Instead, Gao Xian was convinced that he would eat IBM.

"In recent years, there has been a phenomenon in the semiconductor industry, that is, the number of transistors that can be accommodated in integrated circuits will double every two years or even shorter. In other words, the performance will be doubled." Gao Xian undoubtedly said: "this is the driving force of the rapid development of personal computers."

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"It can be expected that the market demand served by mainframe computers will exist in the future, but the solution is no longer mainframe computers, but replaced by new solutions derived from increasingly powerful personal computer technology."

"This is why IBM must not miss the current wave of personal computer development. Moreover, in the buffer stage of the alternation of the old and the new, the personal computer can be used as the front end and connected to the IBM mainframe in the background, so that it will not be eliminated by the times so quickly."

"On the other hand, mainframe computers have not fully aroused the enthusiasm of the whole society to use computers, but personal computers can do this."

"I think IBM will not despise the huge market for computers in the whole society because it is used to doing business with Zhengfu and large enterprises. This is just like that aircraft and artillery are popular only during the war, and there is demand for food, clothing, housing and transportation all the time."

Although listening to Gao Xian's remarks about the elimination of IBM's main product, mainframe computers, is very uncomfortable, Frank Cary has to admit that Gao Xian's words not only convince him, but also have a feeling of sudden light in front of him.

Seeing Frank Cary meditating, Gao Xian suggested: "frank, we might as well visit. Many views are easier to understand only by referring to the facts."

"Good." Frank Cary nodded. He really wanted to see why Gao Xian dared to bid $4 billion for Huanyu computer.

After others quit, Gao Xian said to Frank Cary, "IBM is a great enterprise. Every CEO has his own great achievements."

"In the old Thomas Watson era, IBM dominated by electromechanical tabulators for more than 40 years; in the younger Thomas Watson era, IBM dominated by mainframe computers for more than 20 years."

"The market will not remain unchanged forever. If Thomas Watson Jr. did not lead IBM to carry out product transformation more than 20 years ago, IBM would certainly disappear."

"Now, IBM has come to a crossroads again. Frank, whether your achievements can be on an equal footing with Watson and his son, rather than eating the old capital left by little Watson, depends on your courage."

Frank Carrey looked around nervously and found that no one else had heard this. He was relieved, and then said angrily, "Sir Gao, you really think of people everywhere!"

"You don't need to doubt my motivation." Gao Xian said proudly: "Huanyu computer company is different from its peers such as kangmaoda and apple computer company. The consortium behind it has stronger support, and then has full capital. It can taste the cake of the personal computer market step by step."

"The significance of IBM's addition is that IBM is a gold lettered signboard in the enterprise market, which helps to accelerate the spread of Huanyu personal computers. In other words, although the money earned should be shared, the speed of making money has increased."

"This is my motivation. Whether IBM decides to buy Huanyu computer depends on your own needs."

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