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Technology Stocks : BMC Software

BMCS 0.00820

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Nov 7 9:30 AM EST

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To: P.M.Freedman who wrote (1279)	7/17/2000 11:50:09 AM
From: michael97123	of 1492

Can you comment particularly on price gouging charge and what IBM did to alleviate it. If this person is correct it seems IBM did take punitive action against CA and BMC. "Another major factor that came to light re CA and BMCS is that IBM is releasing their newest S390 product, the G7 this fall. When one of these is upcoming (they happen about every 2 years) they freeze the market, as people know they can get perhaps 30 - 40% more processing power for about the same price as the current product. So they wait on purchases of all mainframe and related products' sales. Finally, a post was made to SI by a senior sounding guy that knows the mainframe market. His opinion was that the 3rd party SW vendors were price gouging, and that IBM was going to do something about it by restructuring the HW and SW with the new G7. That would probably also slow the 3rd party companies' businesses."

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