Description: So IBM decided to drop the bomb on Google — Big Blue will offer a basic email service for $36 per seat, undercutting the latter’s $50 a head Apps pricing. A Gartner analyst called it “trouble for Google,” but I’m not so sure. I think that Google has still got some enormous advantages, and that IBM’s target may actually be another company.

Source: BNET.com

Date: 10/03/2009

Keys: Capital budgeting and Cash flows (p355)

Link: http://industry.bnet.com/technology/10003588/ibm-versus-google-youve-got-to-be-joking/

Questions for discussion:

• What are the advantages and disadvantages to using email services from IBM or another competitor? 
• How does this decision affect capital budgeting and cash flow?
•  What are the implication for HR?