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Technology Stocks : Information Architects (IARC): E-Commerce & EIP
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To: Rich Dee who wrote (273)4/17/1997 11:41:00 AM
From: Jeffrey S. Mitchell   of 10786
 
Rich,

Alydaar marketing plan is centered around Fortune 500 companies. When you see numbers in the tens of millions bantered around for landing such contracts, it's not difficult to understand why.

At first glance you might think that a 500K-1M contract for a municipality would be icing on the cake for Alydaar. Not so. Strategia told the Westergaard audience they expect their State of TN contract to take 6 months to 1 year to complete. They also admitted they lowballed the price to establish a Y2K client base. Also, one other company there admitted that 4 of 6 of their current contracts were non-revenue producing. Hey, there is nothing wrong with that; you and I would probably do the same thing if we had a fledgling Y2K company. I wish both companies the best. However, the point is that Alydaar has been there and done that and "graduated" to the next level.

When you consider that Fortune 500 companies choose quality over price, and that economies of scale make converting 10 million lines of code just as inexpensive as converting 1 million lines, then why not "cherry pick"?

If the $3-600 billion dollar estimate is accurate, there's plenty of work out there for everyone.

- Jeff
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