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James Governor of Redmonk argues that IBM should get in touch with end-cosnumers closely by saying "Buy Amazon". He assert that

Is it really off limits for IBM to buy into retail anyway? If IBM can buy a share in a Chinese bank, as it recently did, its clearly time to rethink what IBM is, and what risks it is prepared to take?

Why IBM Should Acquire Amazon

I have written a couple of pieces recently arguing that IBM needs to rethink its attitudes to “consumer” vs enterprise, because the distinctions are blurring. But rather than go negative all the time, I figure now is a good time to drop a post I have been considering for a while.  

I am not a numbers guy but I understand Amazon is not over-valued at the moment. Buying the company could be a transformative acquisition that would bring IBM new opportunities in both business process outsourcing (BPO) and grassroots development. Most importantly buying Amazon would also put IBM back in touch with consumers again, a calling card it lost when it spun off Lenovo, as well as bringing thousands of small booksellers to IBM as customers, expanding its small to medium enterprise footprint. Did I happen to mention that Amazon is emerging as a major software-as-a-service player…What might some objections be?

IBM can’t compete with its customers, and Amazon is an online retailer, which might damage relationships with other retailers.

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