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Technology Stocks : All About Sun Microsystems
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To: techtonicbull who wrote (49053)5/17/2002 11:28:50 AM
From: Just_Observing  Read Replies (1) of 64865
 
I want them to sell $1 BLN worth of StarOffice this year!

That will increase pretax profits by $800 million to $900 million this year. I may take that.

But more seriously, I am only hoping for $200 million this year. That's just 2 million in retail units worldwide (at $50 each) and about 3 million seats in business at $33 each (pricing ranges from $25 to $50 per seat). The good news is that the 3 million business seats will be recurring revenue. So next year $250 to $300 million is possible.

The total target population for StarOffice is about 600 million worldwide (about 4 times annual sales of PCs) though most have some kind of Office software already. But 150 million new computers are sold worldwide every year. They present a nice target and Linux may be on a few million and is an even better target since MSFT is absent. Besides, MSFT's new licensing plan (plan 6.0, I believe) is facing worldwide opposition (goes into effect Aug. 1). So achieving a penetration rate of 5 million for StarOffice (Freud be damned) is not an unreasonable target for this year.

StarOffice, when released for the Mac, will easily add $50 million a year, given the antipathy of Mac users to MSFT.

With time, Sun's strategy to license StarOffice free of charge to educational institutions, and OpenOffice being free (more than a million downloads already and 120,000 of the source code), will cause a natural demand for the product.

In any case, it's remarkable that StarOffice is selling so well at Amazon. Let's hope that it displays some staying power.
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