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Technology Stocks : FirstWave Technologies (FSTW)

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To: Shege Dambanza who wrote (1204)7/1/1999 10:24:00 AM
From: Roger A. Babb  Read Replies (1) of 9677
 
Shege, yes I do normally look at things from the customer end. Any deal has to work from the customer end to be a long term success and TCO is what it is all about. Of course it is possible to ferret out pricing from Firstwave or anyone else, but I am not going to post it!

In my opinion, the monthly revenue stream is the best way to handle remote hosted operations. Yes, it allows the customers the ability to switch away from you on short notice if a better deal comes along. But then again nothing good ever comes from holding captive a customer who wants to leave anyway. If you have a good product and continue your R&D so as to stay on the leading edge, then trying to lock customers in with big upfront costs is less of an issue.

From a long term financial perspective, I like the continuing revenue stream. You don't get the big quarterly swings based on whether a deal closes by the 30th or not. It takes longer to ramp up revenues without the big upfronts, but in the end you have solid, dependable, predictable revenues.
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