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Technology Stocks : InfoSpace (INSP): Where GNET went!
INSP 83.51-1.6%3:59 PM EST
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To: Greg S. who wrote (17357)3/6/2000 5:31:00 PM
From: Obewon  Read Replies (1) of 28311
 
Greg,

While I agree that local storage costs are an order of magnitude less than X-Drive's offering, it is the sharing/access from anywhere features that will be it's bread and butter.

While local memory is nice, what happens if the computer you are using only had flash memory. All those Palm Pilot's can do alot more than their current memory allows. If you increase the size of the Pilot to accomodate a local harddrive, you compromise the portability and usefulness of the computer, a key selling point over laptops. With the advent of more and more wireless applications, portability becomes an even larger factor.

The way I see it, X-drive fits in perfectly with Go2Net's strategy of buying businesses that can scale to almost any size with no need for a great deal of investment. Like SI, once it gets going, it is almost maintenance free (translating to obscene margins!). Two years ago, people thought Go2Net was crazy to purchase SI for $30M since eveyone knew that a paid subscription service wouldn't work on the Internet. The key thing they didn't consider was that it took only three employees and some computers to create and run a website as large as SI, ramping up for zero posts to 2-3M when it was sold.

So don't belittle the idea just because storage is a commodity. So is an investment opinion posting and Go2Net appears to still be able to make money off of it. )

Obewon
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