3 days ago
Tuesday, June 17, 2008
The news came out today that IBM and Intel are both dabbling in solar energy. They both intend to leverage their experience working with silicone and development of commercial products to disrupt the solar market place. It baffles me why companies with no competitive advantage are eager to enter a competitive market that hinges on high energy prices and government subsidies. I believe that solar energy will play a vital roll in providing energy in the future but that the market is over heated and experiencing a similar run up to tech companies in the late 90's. Did IBM and Intel pay inflated prices to enter the solar market? How is this going to fit into IBM and Intel's strategic plans? In addition, IBM and Intel will need to continue to invest in their fledgling solar businesses at the cost of their core businesses and shareholders.
Posted by Foster Huntington at 1:03 AM