IBM Corp. transformed itself from a lumbering computer seller into a profitable services powerhouse with acquisitions, and Hewlett-Packard Co. is aping elements of that strategy, with its $13 billion takeover of Electronic Data Systems in 2008 and other moves. Dell is as well.
Ellison says services buys are important for companies whose products aren’t very different from rivals’. He says Oracle’s products are highly differentiated and that Oracle is content reselling them through services companies, including HP and IBM.
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