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Technology Stocks : All About Sun Microsystems
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To: Tecinvestor who wrote (29865)4/2/2000 10:40:00 AM
From: Marvin Mansky  Read Replies (2) of 64865
 
Tec, Good Morning: Great analysis. I see longer term inflationary force, "MSFT litigation surcharge" will be introduced to the economy which may cause the entire NASDQ tech sector to drop (top down analysis).

Here is my thesis: Despite the grousing against Microsoft by people on this thread, Microsoft produces some of the most used software applications of any company in the world (They are the no. 1 software company after all).

In the face of enormous litigation and break up expenses raised by what Judge Jackson will deliver as the findings of fact prompting damage litigation, MSFT raises it prices across the board to pay for all this. Their price increases are leveled on a very large number of users.

Remember, the users of their products are "locked in". They use MSFT products so pervasively, that to switch would cost them more than paying the "MSFT litigation surcharge" in the interim. (Of course, if they accept open systems like SUNW proposes, they may not be able to load the alternate software on their existing hardware which will not support such alternative software).There are alternatives, such as SUNW's and LINUX and ORCL's but to switch may be perceived as too costly.

So I see this as just another "MSFT Tax" on businesses and consumers who are so hooked on their software that they cannot switch. I see this as a big inflationary force.

Forget higher oil prices, this will be a driver of inflation that will be more significant IMO.
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