EXDS competition......
So, if the IDC industry growth is close to a tornado, I find it very surprising that the competition would not be a real concern
Huh?????? What makes you think I am not concerned about competition?
A careful reading of my words from posts in the past month or so will show that I have indicated that BTE seem to be low. Therefore, without much solid information, I am assuming BTE are low. Your post quoted my post, which in turn was a re-post of an answer I received to my questions that included the issue of BTE from another Board (MF, I think).
I say again:
1. EXDS is a King, in a market that is tornadoing NOW; last 12 qtrs, EXDS has posted > 40% sequential revenue growth, and enjoys first mover advantages.
2. EXDs is big, at > $15 billion market cap, and has a market share that rivals that of all competitors combined.
3. Barriers to entry are not high; requires building Internet Data Centers, at ~ $40 million apiece.
4. Switching costs are possibly high; clients may not be able to easily switch mission critical servers to new locations; may become entwined with EXDS as their Application Internet Provider, etc. IE, once locked in with co-location, applications, and professional services, just too much hassle to switch. EXDS is also a play on "outsourcing"; outsourcing the web hosting is said to reduce costs to 1/6 of in-house costs for web hosting.
The next earnings report is near the end of this month. Let's see what happens. :)
Apollo |
