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Technology Stocks : Wind River going up, up, up!
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To: Joe Smith who wrote (5601)6/24/1999 2:52:00 PM
From: Snowshoe  Read Replies (2) of 10309
 
>>The pricing is still basically the same. This is purely a marketing focus on getting the tools in the door without VxWorks.<<

Joe, I disagree. Once the tools get in the door, the pricing is different. The main thrust is that Tornado tools can now be bought for life instead of on a per-project basis. Here's how I see the pros and cons:

Pro: Existing Tornado clients who may have been holding out on T2 because of the pricing policy will now buy it, and potential new clients will now be more open to a marketing pitch from WIND's sales people.

Con: WIND will not get automatic additional tool revenues for each new project started by an existing Tornado user.

Im not sure how these will balance out in the short run. WIND has now lost some automatic new project revenue. But upgrades to T2 could be making up for it. And the sales staff now have a great new angle to get their foot in the door and pitch to potential new accounts. In the short run we could even have a revenue spurt.

-Greg

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