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Technology Stocks : Oracle Corporation (ORCL)
ORCL 146.66-5.1%Feb 4 3:59 PM EST
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To: Doug Fowler who wrote (348)11/1/1996 10:49:00 AM
From: Mark Finger   of 19080
 
Oracle benefits several ways:

1. Royalties--they get a certain amount (I heard $25) for every NC sold, because they set a specification, and are furnishing a certain amount of software.

2. Microsoft is locked out. This is even more important. This keeps Windows off the desktop and relegates it to a smaller part of the corporation. This is somewhat like what Microsoft did to Macintosh by confining Apple to graphics and marketing departments. One of the keys to success for a company is to give your competition as few ways into a company, because then they do not have the ear of the decision makers. If Microsoft cannot get Windows and NT into a company in a significant way, because Unix and NC are the dominant ones, then Oracle (and other companies like Sun and Netscape) win, because they now do battle on a field of their choosing rather than of Microsoft's choosing.

3. The other winner is the MIS department, because they can limit certain critical expensive areas. One is the continuous upgrade on software can be done on the server rather than on thousands of PC's. The second is control over the level of network traffic, by limiting certain actions. Third, they have a more stable hardware standard--one of the real headaches is the constant minor changes in hardware over a matter of a few months--making repair and support cheaper and easier.
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