[Chapter 733: Who Did Lou Really Trust?]
"Give up on personal computers? Bill, that's not a constructive suggestion. There's a decline in the mainframe and midrange computer markets, and as for minicomputers, that's just a disaster."
"Mr. Gerstner, IBM doesn't have a price advantage. You see, Dell is growing the fastest, and Compaq is struggling to maintain its current status. Of course, if you guys manage to make a technological breakthrough or address those persistent high prices, IBM's brand appeal would still be significant when prices are similar."
Meeting with Bill Gates wasn't exactly pleasant. It was frustrating to think that that slick little guy now could engage them in a near-equal dialogue. Gerstner was in a bad mood, while Gates seemed to be in good spirits. After all these years, Microsoft was finally gaining real recognition, and having a fair negotiation with IBM was still something that many companies could only dream about.
Whether Gerstner had what it took to lead IBM back to success was a matter of debate. Unlike William White, he believed that IBM's computers weren't notably different from Compaq's. Even Dell, which was relatively cheaper, didn't offer much of a distinction in terms of usage.
...
When it came to his conversation with Bill Gates, Gerstner still felt some confidence. However, facing William White, he truly felt out of his depth. White was already the largest individual shareholder in IBM, which made Gerstner, from this perspective, just another employee.
"Mr. Gerstner, Mr. White is in his private office. Please follow me."
"Alright, thank you."
As he looked around the White Center, Gerstner couldn't help but marvel. It was said that IBM's country club was extravagant, but just look at the White Center. As he walked through, he noticed that most of the personal computers in use were IBM's.
"Hello, Louis, I'm William White. Welcome to my home."
White's use of "Louis" was somewhat disrespectful, but Gerstner didn't see it that way at all. He noted that every laptop and desktop in White's office was an IBM. If this wasn't a deliberate arrangement, then he could practically judge that White was a loyal supporter of IBM. This unexpected situation left him both amused and embarrassed; that Gates kid definitely didn't look kindly upon IBM's computers.
"Hello, Mr. White. I'm sorry to interrupt."
White waved him off, saying, "Just call me William. That's what my friends call me."
With that, Gerstner felt a little more at ease. Great, White wasn't arrogant; he was actually quite amiable. The gap between public rumor and reality was quite wide.
"Give up on personal computers? Hahaha, let me guess, was that Bill's brilliant suggestion?"
A cough escaped Gerstner; he truly didn't expect White to be so straightforward.
"Let's put it this way, Louis. From his perspective, you can't say he's wrong. IBM's prices are high, and personal computer users are extremely price-sensitive. However," White continued, "though it's called a PC, it's primarily used in offices, and these companies might not care too much about a 15% price difference. As for individual users, to be honest, if you don't show good faith, they really won't purchase."
"William, I noticed that nearly all your equipment here is ours. Is this price sensitivity?"
"Not entirely. Relatively speaking, your computers are more stable. As for performance faults, White Systems makes the expansion cards, and as long as there's a PCI interface, that's not an issue."
Gerstner stood dumbfounded. Indeed, White Systems' cards were all compatible with IBM. It seemed they had their eyes on this market all along. But so far, the Big Blue hadn't embraced it. Was this arrogance and prejudice on their part?
"3D accelerator cards are cool; we're considering that for our next model."
"Truthfully, 2.5D would be more fitting. Your target audience still leans towards business, and enhancing graphics processing capability is necessary; as for other capabilities, they don't really matter for now. Louis, the personal computer market is massive; Compaq and Dell wouldn't be able to consume it all."
During the tour, Gerstner's eyes were truly opened. Just for a single 3D accelerator card, White Systems had several R&D teams working on it. This realization frustrated him. A 3D accelerator card could boast 64 megabytes of memory, while his designers still debated if they should go with four megabytes or eight.
What on earth? With the times as they were, he couldn't believe they were still mulling over whether it might disrupt the minicomputer market. The White Center wasn't merely about luxury; apart from White's floor, all the other employees were on the move.
Sigh, if the Big Blue's employees operated like this, why should he dismantle that country club? Pulling back employee benefits recklessly was a terrible idea. Gerstner, if it weren't absolutely necessary, wouldn't play the villain. He was just another employee trying to avoid turning hundreds of thousands of workers and their families against him. That truly wasn't a pleasant situation.
Darn it, you'd think their benefits at White Systems were better than ours, but why were they managing just fine? You ought to see their efficiency versus ours.
Wow, that William White really knew how to enjoy life.
William White and Bill Gates embodied two completely different styles. It was hard to clearly determine who was more formidable. Gerstner found it fascinating how William White's familiarity with IBM exceeded his expectations. From this angle, his investment in IBM was clearly well-prepared.
Lou wasn't going to give up on PCs, that much was certain. Certainly, if he cut off all the unprofitable divisions, IBM could regain profit swiftly. But then, would it still be the Big Blue? Those with sharper tongues would simply call it the little blue smurf.
The personal computer industry had a colossal pie, and it all operated on IBM standards. To be honest, White couldn't quite fathom why Gates seemed to harbor a grudge against them.
...
"Sir, has Gerstner lost his mind, or did Bill Gates take the wrong medicine? We all want a piece of that PC market, and they're planning to give it up."
"Ha, it's just a smokescreen. As for Bill Gates, he probably got bullied by IBM in the past. This is his way of throwing the stone."
"That's not quite right. Without the Big Blue..."
"Filson, you can help others, but not excessively. You see, I've stumbled upon some issues in Africa as well. Now they are asking us, 'you gave us 150,000 tons of wheat last year, so why only 100,000 tons this year? Why'd you take our food?' That's their reasoning."
Filson was at a loss for words. He couldn't grasp what went wrong in these people's reasoning.
"Sir, it seems charity isn't off the table, but it definitely requires caution."
"Ha, to be honest, why should I care about how they think? If they don't like it, let the people at the food agency deal with it. It's best to avoid engaging directly."
Getting involved in charity shouldn't be this frustrating; that might just be a unique predicament.
William White now understood why these wealthy folks would rather look after stray cats than address the plight of homeless people.
*****
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