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Technology Stocks : Wind River going up, up, up!

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To: AE who wrote (9574)5/5/2001 1:23:07 AM
From: lkj  Read Replies (1) of 10309
 
The only question that I still have is why did HP switch from Wind if their software is superior? If the royalties are so high that the superior software is not a justified expense then there is truly a bigger problem.

Hi AE,

You hit it right on. Does WRS' software offer enough benefit for the high licensing cost and royalty rate?

WRS' software is good for:
1) small volume products
2) high cost products
3) complicated and fast evolving products

There is also a set of products that WRS' software is not good for:
1) Low cost products
2) High volume products
3) Products with long life cycle
4) Products that offers a very limited and specific set of functions
The reason is obvious, WRS' software cost a lot of money.

Lastly, those who want a lot of control of their products will not choose WRS' software, and those who want to differentiate their products will not choose WRS' software.

Khan
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