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Subject: Re: IBM would risk 37 billion dollar

Author: Robert Hyatt

Date: 08:05:57 04/01/01

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On March 31, 2001 at 04:49:05, Bruce Moreland wrote:

>On March 30, 2001 at 09:51:47, Vincent Diepeveen wrote:
>
>[snip]
>
>>But let's approach it from how IBM will approach it. It will be
>>a business decision, and those decisions are usually taken by managers
>>who probably never heart of the 'en passant' rule (i'm not implying
>>that most readers of CCC therefore know the rule).
>>
>>Managers think in terms of numbers. The number is quite convincing
>>to NEVER ever again let Deep Blue live when it is interesting to let it
>>play. It's obvious that in 2001 programs are hell better now as in 1997.
>>
>>Like any commercial program of today will beat the hell out of this deep
>>blue thing. If it's not book, then it's because of pawn structure, if it's
>>not because of that, then it'll be exchanging some crucial pieces in the
>>middlegame etcetera.
>>
>>However this is all of no concern of business men. They see a 37 billion
>>dollar risk.
>
>It's not a 37 billion dollar risk; that's complete lunacy.
>
>What they got out of DB was the impression in a lot of people's minds that IBM
>had created a machine that was stronger than the best human on earth.  This
>impression has some value.  It's a nebulous sort of value.  It's the idea that
>people might be more likely to have a warm fuzzy feeling about IBM and buy their
>stuff over someone else's.  The value is not equal to 20% of the value of the
>company (the market cap is $169B).  That's just insane.
>
>If they lose another match, to either a computer or a human, they will lose the
>prestige value.  If they win, they will retain it.  It's stupid from a financial
>viewpoint to risk a lot without having anything to gain.  So I agree with your
>conclusions about why it won't play, I just think your math is crazy.
>
>bruce


What IBM got out of the match was _lots_ of free publicity on every TV/Radio/
newspaper/magazine/etc in the world.  It was simply "good exposure".  There is
no way to "take that exposure back".  The previous result could be "tainted" by
a loss of course.  But I agree that all that would be lost is a bit of mystical
aura...  not part of the company.  People buy (today) from IBM because they are
IBM with a strong service and support reputation.  Not because they beat Deep
Blue.  Deep Blue just got their name in front of a _lot_ more people.

They decided to "quit while they were ahead".  There is little we can do about
it except to wish it had not happened...  I would almost be willing to bet that
if they played a 3rd match, that just playing the match would generate enough
publicity to offset any possible negative impression should they lose that
match.



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