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Technology Stocks : Vantive Corporation
VNTV 77.60+2.6%Jan 12 4:00 PM EST

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To: Konehead who wrote (1558)2/24/1998 7:50:00 PM
From: Kevin Rose  Read Replies (1) of 3033
 
Hi Konehead:
Far be it for me to discount the value of Microsoft as a customer. They ARE the premier customer for anyone. They provide vivid feedback and high visibility.

The point is that if you look at a deal with MS strictly as a money maker, you will be disappointed. The value of having MS as a customer is having them as a partner and showcase. Making them "happy" is a gauntlet that few companies survive (ask Scopus). But if you do make them successful, it can be a HUGE feather in your cap.

The downside is, of course, the huge amount of work needed to achieve that success. It can be distracting, especially to a company that is rapidly expanding. We were fortunate enough to have it happen at a relatively early stage in the company, so we could focus the necessary resources (there just wasn"t the sheer number of customers and issues at the time).

I wonder if SEBL could handle the extra work at a time when they NEED to grow rapidly. Paraphrasing Geoff Moore, when you are in the tornado you need to ignore the customer (well, maybe an oversimplification here, but you get the point). If you ignore MS, you set yourself up for a disaster. Remember, visibility reveals both the good and the bad.

For example, let"s assume that SEBL has enterprise scalability problems. You can bet that MS would want action FAST. Then, ole Tom is faced with two choices: mobilize and lose focus, or ignore MS and pray. Either option increases risk substantially. Seems to me that SEBL doesn"t need any more risk at this time (did someone say 17X sales?)

Good luck.
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