SunRocket’s suddent demise has left it’s 200,000 customers with many questions and few answers. Most are trying to get money back for the annual fee they paid, and in parallel, calling Vonage for a new account. Recent layoffs had indicated that SunRocket was not doing well, but on Monday morning, when subscribers couldn’t make calls, it was clear that SunRocket went down from it’s position as the #2 Internet VOIP provider in the US. Lets will see what SunRocket’s sudden demise means for VoIP market and customers. One thing is for sure, Vonage will gain from this, and will further consolidate it’s top spot.
There is strong rumor that Microsoft and Yahoo are talking on a deal – they did engage in talks a year back but nothing came out. But in the same one last one year, Google has made a few big moves, which can easily make these two ‘other giants’ rethink their original positions. Yahoo has continued to struggle while Microsoft has seen an increasing threat in the form of Google and both companies have seen major reorganizations in their top management.
So some form of teaming might make more sense now and The Wall Street Journal is reporting that “executives at Microsoft and Yahoo are taking a fresh look at a merger of the two companies or some kind of match-up that would pair their companies’ respective strengths.” While talks are reputedly in the early stages, Microsoft is certainly feeling a sense of urgency due to the Google threat. “Short of a wholesale merger, Microsoft could spin its online group into a separately-run Yahoo, in return for a Yahoo stake. Continue reading
Michael Dell reclaims Dell CEO throne, Dell 2.0 begins by ZDNet’s Larry Dignan — Michael Dell is CEO again of his namesake company. Kevin Rollins is out. Why? The company is going to have another earnings miss. Dell said it “expects its fourth quarter fiscal year 2007 results to be below the average of First Call estimates for both revenue and earnings per share.” According to Thomson Financial, Dell is projected to report fourth quarter revenue of $15.3 billion and earnings of 32 cents a share. For the year, Dell is expected to report revenue of $58 billion and earnings of $1.17 a share.
Dell’s biggest issue is that its manufacturing prowess isn’t the edge it used to be. And Dell doesn’t spend enough on research and development to truly innovate. As a result, Dell is mired in a commodity hardware game. That game plan was fine when rivals were inefficient, but HP can now squeeze Dell on price. What should Dell do? That’s the topic for a subsequent post on this blog.