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Palm reading: an analysis of Palm, Inc. (continued)

Let's talk next about the Extended Systems deal. I know that a lot of people were excited by the prospects of Palm acquiring this fine company. And, as you might expect, these same folks were bummed when the two companies decided to continue on as their own separate entities.

I have to tell you that I consider this is a non-issue. In fact, the more I think about it, the more I'm convinced that canceling the merger was a great idea (especially since there are no penalties for either party, another sign of mature management). There's no question that Extended Systems would have added value to Palm. But as a Palm partner, the "Palm Economy" can derive as much or more benefit from the hard work of Extended Systems' employees. And it's not like Palm is lacking for excellent enterprise partners. As shown in my interviews with both IBM's Jon Prial in the December issue (see http://www.palmpowerenterprise.com/issues/issue200012/prial001.html) and my interview this month with Howard Beader of SAP, the best-of-the-best enterprise computing companies are enthusiastic advocates of Palm and Palm's products.

But the key reason I think it's good that the Extended Systems deal didn't consummate is that it's a bitch to integrate two companies. Extended has about 380 employees and integrating them with Palm's 1,500 or so employees (even if the two companies stayed seemingly separate), would have been a huge challenge. Without the acquisition, Palm's workforce remains undiluted and fully inculcated with the company's vision, message, and plan, and can continue to execute on mission without any sort of learning curve.

So, don't go crying for Palm. And don't worry about them. They're more than fine, and they're on track. And, believe me, this is something I know. We've published more fully edited, original articles on Palm and, in particular, Palm's enterprise opportunities than any other publication. Every month, my entire staff of editors and analysts puts Palm, from both the consumer side in PalmPower and the enterprise side in PalmPower's Enterprise Edition, under the microscope. We've uncovered some minor flaws (the use of silly BMW-like product names is our current beef), but we've also seen the absolutely tremendous advantages of Palm devices.

Then, take a look at my editorial this month, entitled "I'll show you mine, if you show me yours." In this, you'll see an overview of who reads PalmPower's Enterprise Edition, and by extension, who uses Palm devices. It's the literal "Who's Who" of the most successful large-scale enterprises, banks, and even such august bodies as the World Bank, the Federal Reserve, the United Nations, and everyone's favorite, the U.S. Department of Justice.

Next, go through the back issues of PalmPower's Enterprise Edition (located at http://www.palmpowerenterprise.com/backissues/backissues.html) and read, really read the stories. These are stories of real enterprises making hard-line business decisions to use these devices. The enthusiasm and ROI (Return On Investment) they universally report is nothing short of astounding. Read the interviews with IBM and SAP I've mentioned above. These are exceptional companies that, smartly, do not do anything that's not in their best interests, and they're fawning over the possibilities of Palm devices in the enterprise.


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