What does a hardware company do when hardware becomes a commodity and margins dry up?

Just what IBM did several years ago when they bought Price-Waterhouse Coopers, apparently - you get into the services business in a huge way.

But since then IBM has cut its services business quite a bit and is moving in with a new strategy towards the middle market.

Is HP going to run into the same problems and end up chasing the small to midsized market in a few years (like IBM is now). I'll bet they do. Giant consulting businesses have alot of issues and these are not issues that a hardware company typically has the culture to solve.

I'm puttin my money on IBM.

Curt runs a timesheet company in Austin.