You could argue whether we are right or wrong, but from our perspective, we believe that price will not be the primary criterion going forward. I don't believe that we are near commoditisation yet. How to bring value added solutions to it. How to partner in a way that protects that investment and focuses on total cost of ownership. While it may be easy for some of the larger partners like US Cisco partner Skyline which has leveraged IBM data centre experience to bring value-add to its customers, it might not be so easy for the smaller guys.
Nothing causes a change in behaviour like survival.
You saw what happened to the PC dealers, if you are merely providing the box, you can't afford the overhead structure. So unless our partners either dramatically reduce their overheads or dramatically increase their value they are not going to make good profits. So being very honest and candid with them is what it is all about. Secondly, helping them make this transition and being realistic is in all of our best interests. During economic downturns, cash is king.