Description: So IBM decided to drop the bomb on Google â€” Big Blue will offer a basic email service for $36 per seat, undercutting the latterâ€™s $50 a head Apps pricing. A Gartner analyst called it â€œtrouble for Google,â€ but Iâ€™m not so sure. I think that Google has still got some enormous advantages, and that IBMâ€™s target may actually be another company.
Keys: Capital budgeting and Cash flows (p355)
Questions for discussion:
- What are the advantages and disadvantages to using email services from IBM or another competitor?Â
- How does this decision affect capital budgeting and cash flow?
- Â What are the implication for HR?