You may be right. I've been watching for a while, and thinking of buying a little. You don't think they paid to steep a price for Perot? Looks like they shelled out about 40 times earnings. Would be interested in your thoughts on this and the company in general, and any commentary from other longs too.
paying too much or too little is all based off someone's frame of reference. sometimes you have to pay a premium to get a quantum leap in a certain development or key strategy you're trying to achieve. It's not like Mike told Ross Jr hey, you're asking $25/share just to pay more I'll give you $30/share.
There's no way they could have walked away from this deal for another alternative that was just as good. The Naysayers to that particular deal couldn't come up with a better deal related to price/package comparison. It's like saying I got a 10% discount off a new Toyota, or paid 25% more for the last made maybach for 2009. If Perot wouldn't sell for less, that doesn't mean Dell should have went elsewhere just to save a few dollars, and sacrifice getting something they didn't want or couldn't use as well. Price is price, and as long as they didn't give away money for free, that's fine in my book.
Now as far as why Dell would become the next IBM I'm talking of potential hitting the services area hard, Dell has the right team to make the next leg up. Just the right acquisitions as IBM did in the past will help propel them to all around coverage in supporting all clients, while still having that feel of the relationship with a SMB provider.