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Wild Times at Perot (JJ that is...)

July 16, 2008
by vciotti
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Reports have circulated about a major RIF at Perot in their newly-acquired "JJ Wild" division. As you "Meditechies" all know, JJ Wild was the only officially endorsed "partner" of Meditech for hardware, garnering themselves a handsome annual revenue with little marketing costs - somewhere around $100M per year. Perot's acquisition of them seemed a little strange - what did a premier consulting firm want to sell hardware for? Simple answer - about $100M per year in annual revenue...

There was no official announcement from Perot about the cuts, which impacted mainly senior management at JJ. Unofficially, Perot reps dismiss the cuts as trimming what they felt was a bloated top management level at JJ, which is probably true of most large firms, including Perot! The difference is who's on top at the time of the cuts...Â

What does it mean in the market? Probably not much: most wise buyers ( a small few unfortunately) get quotes directly from IBM, Dell, etc., to keep JJ's bloated quotes honest. The majority of Meditech buyers however do whatever they say in Boston, drinking the magic cool-aid and over-paying substantially for fairly standard servers, plus large add-on "consulting" fees from JJ.

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