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Technology Stocks : Corel Corp.

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To: zax who wrote (8871)4/13/2000 2:59:00 PM
From: Dennis Nicks   of 9798
 
Zaxbowow, my question was name something positive that an Inprise shareholder gets from this deal. Yes, Borland/Inprise has the development tools that make the (Debian) Corel Linux desktop an "end to end source." But that's the Linux desktop, which I think is a long ways away from significant market penetration. As a long-time Borland/Inprise investor, I am convinced that the future of software is not on the desktop, but on the server. This is the direction that Borland/Inprise has been heading for the past 3 years. From Q4(99) about 40% of revenues came from enterprise middleware, tools and support. 60% came from traditional software development tools. The real story is in the revenue growth. The enterprise middleware and JBuilder products are growing roughly 25%. Revenues from traditional development tools are flat or decreasing.

Your response to why this deal is so great doesn't even include the fastest growing part of the revenue mix. I'm not about to gamble a real growing revenue source so that Corel can become a Linux powerhouse.

If you want a Linux powerhouse, license the development tools from Inprise (much like Oracle does with the Java development tool), repackage it, shrink-wrap it and sell it at all the retail outlets you can (isn't that what Corel does best?). Even better, you can call it Corel Java and Corel C++ and Corel VisualPascal.

This deal stinks! For more information on why this deal stinks:

killthedeal.com
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