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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.


Date: 10/03/2009

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? 
  • How does this decision affect capital budgeting and cash flow?
  •  What are the implication for HR?

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