Tom Petrocelli's take on technology. Tom is the author of the book "Data Protection and Information Lifecycle Management" and a natural technology curmudgeon. This blog represents only my own views and not those of my employer, Enterprise Strategy Group. Frankly, mine are more amusing.
Friday, August 27, 2010
Monday, August 23, 2010
Wednesday, August 18, 2010
- 3Par would have eventually hit the wall. The hardware industry is a game of numbers. Big volume plus low cost equals great margins. You need market share and manufacturing prowess for that. A company the size of 3Par would have eventually gotten eaten alive by the big boys.Or faded into irrelevance. That would have been the slow death.
- The deal provides a nice Return on Investment for 3Par investors. I like it when people make money in startups. It provides fuel for more startups and gives hope to the rest of us entrepreneurs. Now, if you all want to swing some of that cash my way…
- I bet Dell really wants 3Par. 3Par could have gotten bought up by someone who just wanted them out of the way. That would have been sad for the industry. There is a better chance that some of what makes 3Par unique will continue to live on at Dell. It’s nice to be loved.
- 3Par employees can get great deals on Alienware computers. I’m just speculating but wouldn’t that be cool. Those babies are hot! If that’s not in the term sheet then amend that puppy now.
- US$1.15B is a lot of money. Dell is going to have to sell a lot of storage to make that back. That’s especially hard to do when the 3Par message has often been how you could buy less storage at a cheaper price to get the same functionality. I get the “less is more” messaging for a startup but you all have to make back a big pile of money now.
- Dell’s bought a lot of storage companies but still doesn’t have a cohesive storage message. This is actually a good-not good thing. On the one hand, you don’t think of Dell as being in storage the way you do, say, HP or EMC. They’ve bought up a boatload of storage companies but it’s like Yatzee - all tossed in an incomprehensible pile. On the other hand the scrappy 3Par people are really good at new marketing. If they stick around (and Dell should make it worth their while to stick around) they could have a positive effect on Dell’s overall storage marketing. If they’re allowed to which brings us to…
- They can’t use what makes 3Par special. People think that companies like 3Par are about technology. Not really. They are about ideas. The simple audacity of 3Par is part of what makes it successful. That rarely translates well in a big company. Just because Dell wants 3Par doesn’t mean they know what to do with them. The impact of the creative folks that have been driving the company will be diluted once they are just a cog in the Dell machinery.
- On some level, this has to annoy EMC, Dell’s big storage partner. The more meat Dell adds to the storage stew, the less tasty it is for EMC. I keep wondering how long EMC will put up with this. Dell clearly wants to create a business that competes with EMC. An ugly breakup would be bad for Dell since EMC could probably crush them in the enterprise storage segment. My guess is that the only reason this has yet to happen is that Dell has not gotten it’s act together enough to really get in EMC’s way. Maybe this is what EMC needs to go buy a server company and finally become the full service provider that they should. Some of those Taiwanese computer companies have good SOHO servers that would fit in well with Iomega and Mozy. Just sayin’…
Monday, August 09, 2010
|The Sticker Licker!|
|Everything about the tasting room screams the Magic Hat brand.|
- It provides a point of reference. When you see an HP computer you know it’s an HP because of it’s design elements. This is why monkeying around with your logo is a dangerous thing. Not just the logo either but colors, shapes, packaging, the whole tragedy.
- It attracts people. Consumers need to know about what you have to offer. Branding helps cut through the white noise of the marketplace. It doesn’t matter if it’s the whimsy of a beer company or the messaging of an OEM tech company. Folks need a reason to listen to you. Your being there isn’t enough.
- If coupled with great product, it builds loyalty. The ultimate goal of branding is to associate your product with some set of emotions that makes them want to keep in touch and consume more. And to tell all their friends too.