Junko Yoshida has an article in EETimes covering vertical vs. horizontal integration. It is a question of control vs. economy of scale and proponents of the vertical approach claim that vertical integration allows them to be more responsive to customer requirements and allows them to differentiate their products. In parallel with these discussions and prognostications, Intel continues with its new "Platform" strategy which, in my opinion, tries to turn what has been a horizontal business for many years into one which almost walks upright.
There are some interesting parallels for Project Management where a PMO is a horizontal model and embedded Project/Program/Platform management is the vertical model. How do PM tools and processes support these different models? Lots to think about...