>>Look at it this way: If web client and server margins trend towards zero (which they are) who will survive? MSFT doesn't need a dime from IE or IIS to remain successful. Can NSCP say the same?
This is, of course, Microsoft's strategy: Copy Navigator feature for feature, try to convince the development community that ActiveX is better than Java, give everything away, and kill Netscape as the result. Once Netscape is dead, Microsoft will start charging for extended features to its free products, and Microsoft's dominion will live on.
Netscape's investors, employees, customers are betting that's not the world most people want. The company's revenue is compounding at 40% per quarter, and the company will sell somewhere around $250 million of 'net software this year. Microsoft's internet revenues will be what, zero?
If I read my reports right, Netscape's gross margin on client software is near 90%. I saw their manufacturing line for my self: It's a five-foot high stack of SGI Challenge servers pumping out product over the net at zero incremental cost.
BTW, Bill, I'm enjoying and learning from our interchange.
How do you ISP guys plan to stay in business? |
