[Chapter 474: The Wrath of the Blue Giant]
Compaq delivered a hard blow to IBM on the personal computer front, leaving the management of the Big Blue in an awkward position.
Who would have believed that during the push for the popularity of the 386 computer, IBM simply sat by and watched?
"Sir, with the 486 computer coming out, I'm afraid IBM won't stay behind anymore. Should we reduce our holdings in Compaq?"
"Reduce? No need. What's the use of IBM getting fired up now? Where have they been all this time? Filson, is there something I don't know?" William White questioned, skeptical. Given IBM's usual behavior, how could they move so fast on the 486?
"Sir, Compaq's sales target this year is two billion dollars, and based on the first-quarter sales, there's a strong chance they might hit it."
William White was taken aback; two billion dollars was no small sum -- it marked their entry into the first tier of companies.
"That impressive, no wonder IBM is spurred. It's only been a few years. A company with a 10 million dollar investment is planning to challenge a market value of 100 billion?"
Filson thought to himself, considering how White's earlier investment was now paying off nicely, while he pretended to be oblivious. It seemed the boss had a good grasp of the game.
"Not only that, but Compaq has also announced their entry into the server field."
"Ha! I figured as much. The Big Blue has stirred the pot now. At this rate, within ten years, Compaq's market value could match or exceed theirs. They absolutely can't allow that to happen."
Listening to his boss, Filson felt a wave of confusion. No wonder White wasn't reducing their stake; Compaq's ambition was indeed substantial.
"Failing to release the 386 was a major decision-making mistake for IBM. They were trying to protect their minicomputers from being undermined. Well, it turned out they were fools. Speaking of which, the Big Blue had a serious dose of blind confidence. Just because they don't produce 32-bit personal computers doesn't mean no one else is allowed to. Now look, their minicomputers aren't selling, and their midrange and mainframe systems will face challenges as well. They're heading for a shipwreck. I bet their board members are in a frenzy right now. Here's hoping they can sort it out soon."
Despite his words, the smile on his face seemed to say, "Bring on the chaos."
...
William White wasn't mistaken. Before they realized it, their competitors had already knocked on their door. In just a few short years, three companies that had been swept out by Texas Instruments staged a remarkable comeback.
A group of Wall Street vampires was spreading various rumors everywhere. In short, the message was clear: the Big Blue was done for, and in its place, Compaq was rising.
In fact, IBM should consider itself lucky since the antitrust disputes surrounding Legendary World had erupted. The Chicago School had clearly taken the upper hand, firmly opposing government intervention in corporate affairs. As politicians, they shouldn't be telling companies what to do; they should focus on providing good service.
If politicians were such all-rounders, they might as well go run a business themselves.
The breakup of AT&T hadn't changed much in the telecommunications industry, and the investigation into Legendary World's antitrust case had ruined the American gaming console industry, indirectly aiding their foreign competitors.
As for IBM, most of its energy was spent entangled with the Justice Department. If this continued, a great enterprise might collapse into ruins.
...
William White, now a major player, certainly didn't favor the Keynesian economy. Just mind your own business; why stretch your hands toward mine? To cheer on the Chicago School, White's fund didn't hold back on donations.
In essence, the establishment was opposed to Keynesian economics. After years of pressure, they started to see some positive changes.
In White's eyes, both economic theories had valid points, but each also had serious flaws. The public's support ultimately depended on the narrative.
Usually, NBC liked to juxtapose Keynesian ideas with Soviet policies. With that approach, good reputation was hard to come by -- ordinary folks were just left feeling anxious and uneasy.
Since the antitrust investigation of Legendary World began, William White had done his utmost to complicate matters for them. Amazingly, his efforts were quite effective, even resulting in dissenting opinions within the Democratic Party.
"Filson, what's the Big Blue thinking regarding the operating system?"
"Ha, they regret it a bit but can't do much about it. However, they're unlikely to collaborate with White Systems."
"Ugh, it's not like I stole their girls. Why are they so wary of me? They're destined for failure."
Some might say he should just develop his own software and not worry about the IBM's opinions.
Alright, William White had no intention of drawing fire to Compaq, and besides, Intel wasn't necessarily going to collaborate with him either. Business wasn't something to be taken lightly, even if the Elephant still dominated; no one wanted to see just one player with all the cards.
In the software industry, he'd just sit back and let Bill Gates do the heavy lifting, while in hardware, his products would be luxury items -- not worth squaring off against Compaq.
White relished in the discomfort of IBM, which finally had some results coming from its board. Personal computers, which had been overlooked, were finally getting the recognition they deserved.
Compaq alone boasted 2 billion dollars in sales per year. Including various smaller brands, they pulled in at least 3.5 billion annually.
The scariest part wasn't the 3.5 billion, but the growth rate of this industry, which far exceeded expectations. If the pace held, in five years, it would turn into a market worth over a hundred billion dollars.
Investors had every right to be furious; the Big Blue had been far too complacent. When compared to this one-hundred-billion-dollar market, their minicomputer business was nothing. They sacrificed a whole forest for a tiny watermelon.
...
Recently, Bill Gates found his ears burning. The news coming out of IBM was quite humiliating for him.
Garbage, ungrateful, biting the hand that feeds them -- he had heard it all.
Bill was furious; he had been cooperating with them, for crying out loud. Without those orders from the compatible machine manufacturers, he wouldn't have been a billionaire today.
Alright, some people were bringing up past grievances.
Regarding this, Bill had no way to counter. He knew he hadn't won in a very fair manner. But did they really think William White was easy to push around?
He was well aware that White had prodded Apple and Commodore into developing an operating system together. If that had been successful, IBM's troubles would have been far worse than they were now.
Back then, Steve Jobs had joked about it. Now it seemed that William White was the one with vision -- someone who wouldn't hang his hopes on just one tree.
A decision had to be made now; Bill Gates realized their partnership was likely on borrowed time. He believed it wouldn't be long before their current alliance became history.
Bill Gates needed allies -- he desperately needed them. He didn't have the guts to face the Big Blue's wrath alone.
*****
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