Thursday, September 23, 2010

Jia Peng Lei: "diversity" denatured


"I have a dream" - Many Chinese companies have said that fun is a lot of people say objective is "China's GE". Either Founder or Haier, Lenovo, whether or BOE, but there are numerous, fewer successes than failures.

The failure of diversification, I think there is no fixed answer. Culture is not fixed, the water has no fixed form. Specific to each business practice not to mention the process of diversification of the problem, even a large environment, I am afraid that their feelings are not the same. This is the hottest with the current international trend similar to, anyone can call international, but really made a few more?

Negative association can be called a typical diversified. However, if we try to find a typical reason, I am afraid will make us think. Shouted slogans from the diversification to the official declaration of the 2001 failure of the 2004 variety, in fact, Lenovo's performance did not decline significantly because of diversification, at best marking time. Why, then, it will become a classic? Because the prominent position, or the limelight too fresh? During that period, Lenovo's acquisition of dazzling movement, want to become another "IBM" the ambition to write in the forehead.

The way in finding the process of growing up, not just think diversity is found in section diameter. Should be on diversification, Founder Group, is the most famous. In its heyday, but even the Founder Group, when the family can not remember the number of its companies.

China's GE, is the Founder Group chairman Wei Xin is currently still say a word until today. Wei Xin said that all the eggs are placed in IT industry, the risk is too high. He wanted to do a larger chassis, and then a layer of a layer of the pyramid base. Now, the pyramid of the tower bottom already have IT, medical, pharmaceutical, beverage, steel, securities, finance, rare earth, playgrounds and other kinds of bricks.

In fact, if we look at the major shareholder of Lenovo - Lenovo Holdings today's development trend, perhaps they will understand, times are different, understanding of diversity has changed.

Legend Holdings is now one of the most powerful, although Liu's exposure has been a little boom. In its subsidiary, IT, distribution, real estate, logistics, food, auto parts, air cast so good momentum emerged. Moreover, all the basic operations in various fields have become the blue chip stocks, Liu's vision and courage is commendable.

Lenovo Group, the diversity of the year, it is not really diversified? We take a look, it has done, whether software, hardware, services, finance, consulting, etc., while looking confused, in fact, are in the IT circles round and round. This is not not a good way, because among the countless different businesses can complement each other well. Unfortunately, selling Lenovo PC descent beyond the control of these relationships. Only one control to - a face difficulties, we are faced with difficulties, become "trouble the same as" good brothers.

Some people asked, Liu able to control the current diversity of Legend Holdings, are beyond the control of wound up on the Lenovo? Does not seem entirely human reason, or on the "diversity" to understand wrong. However, we can not say that the road on the way, how to get to the next step is hard to say. However, we only know that the stand point of Legend Holdings, is the internationalization and diversification have made a "stage victory", is indeed gratifying.






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Tuesday, September 14, 2010

Data Domain's position once again tend to NetApp



Exclusive translation銆?銆怶atchStor Data Domain, said yesterday that the relative EMC's all-cash acquisition proposal, they still tend to NetApp's cash equities mixed mode, while Data Domain in the two weeks before the show was over that position.

NetApp EMC and Data Domain are presented to 30 U.S. dollars per share (the total transaction amount, 19 billion) bid.

Data Domain data deduplication technology, a professional company, this technology can remove redundant data to help users save a lot of storage hardware costs.

Data Domain, said, NetApp's offer is a "strong commitment to the negotiations", if the EMC Data Domain did not refuse the offer, then it will remove these transactions may NetApp. Data Domain also said they can not negotiate with EMC to offer, as EMC has not yet passed and negotiations relating to confidentiality and other agreements.

Data Domain also pointed out that if they agreed to the acquisition of EMC, NetApp will be needed to pay 57 million U.S. dollars to the suspension of payments.

EMC CEO Joe Tucci said in a statement, EMC believe that their proposal is more generous than NetApp. Tucci said: "We believe EMC 30 U.S. dollars per share all cash offer proposal for Data Domain to ensure price stability, price protection and fast end of the acquisition. EMC's all-cash acquisition proposal meets all the stated objectives Data Domain. We do not think Data Domain shareholders will deal with NetApp. EMC will continue to adhere to the successful completion of this transaction. "

NetApp CEO Dan Warmenhoven said in a statement, Data Domain announced the news "again strengthened our confidence: NetApp Data Domain shareholder proposal to provide attractive short-term and long-term value, while shareholders do not need to worry about Data Domain anti-trust issues, and clearer and more timely manner to complete the acquisition. We will continue our proposal, submitted to the shareholders vote and begin to fulfill a strong joint commitment to this. "

Warmenhoven also noted between NetApp and Data Domain's "cultural compatibility" - which many analysts believe that Data Domain is also in talks clear preference for one of the reasons NetApp.

Stifel Nicolaus analyst Aaron Rakers that, EMC is likely to increase the purchase price of Data Domain. He also quoted a Reuters report: EMC shareholders may vote on the transaction with NetApp moment before raising auction.

And just yesterday, the U.S. Federal Trade Commission the same time they have started two companies bid on the anti-monopoly review. NetApp said, EMC's bid is likely to face antitrust obstacles, many analysts have mentioned before on this issue.

Bernstein Litowitz Berger & Grossmann LLP and Grant & Eisenhofer PA law firm of two lawyers announced that they have on behalf of shareholders to Data Domain and NetApp launched a lawsuit, claiming Data Domain shareholders, "refused to negotiate with the EMC behavior contrary to shareholders their trust, "" In the absence of any measures taken to increase the maximum extent, where the price agreed to Data Domain to sell to NetApp ".

Data Domain spokesman refused to comment on the lawsuit.







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