Re: Life after Digital

Arne Vajhøj wrote:

The most relevant point is that there are no reason to complain
over HP doing it.

I disagree.

The "maximise profits" tactics used by HP are similar to that taken by
other "old" companies who are running out of new ideas and must resort
to extracting more money from existing customers to retain good ratings
with the Wall Street Casino Analysts.

We should all know here that "milking customers for more money" can only
work so long, after which the company dies. When a new entrant comes in
with a newer product and no "milk the customer", he risks taking over
the market and killing the old company.


But maximizing present value of all future profit is usually considered
good behavior.

In the case of VMS, HP has done the opposite. Upon in heriting VMS from
Compaq, HP had a valuable asset whichg it chose not to leverage. When
you buy a company, it is usually because you think you can fix its
problems and thus increase its value.

HP chose to NOT fix the problems of VMS (lack of marketing) and has
allowed VMS to be relegated to "for the installed base only" and
allowing VMS to wither away bit by bit without any attempt to fix it.
This is not "maximizing present value for future profit", it is the
opposite.
.

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