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Technology Stocks : INTUIT! Any Info or Thoughts....
INTU 629.46-5.0%Jan 2 9:30 AM EST

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To: don kramer who wrote (41)4/18/1996 2:50:00 AM
From: Eric Lindahl   of 79
 
The proliferation of secure commerce standards (see MasterCard/Visa/Microsoft/other standard 4/17/96) make it easier for smaller companies to do business on the Web without the assistance of companies such as Microsoft & Intuit. These companies can really only hope to make money by inserting themselves in the money stream so as to make a per transaction fee possible. This can only be done with strategic alliances w/ established banking institutions. True, short term profits will be realized with enabling tools such as Quicken, Money etc, but these markets will be fiercly competed b/w MS & Intuit. MS is situating themselves to attempt to releive Intuit of some of it's market share (see MS press notes last month or so).

MS Anecdote:
While working with Wells Fargo, MS & Intuit were working with WF for their online banking projects. The dev staff were glowing on Intuit's helpfulness and attention to detail. As for MS, MS would not give even the slightest information about Money without >Source Code< to the communication protocol WF used, and WF had to send people to MS contantly. With source code in hand, MS prompty pulled out of dev efforts which WF invested heavily in. This is reminicent of what MS did to Stac.

Moral:
MS will make a bad bedfellow for strategic bank alliances.
Short term is a toss up, maybe slightly weak INTU, but INTU will probably win out in the long run.
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