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Strategies & Market Trends : Gorilla and King Portfolio Candidates
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To: Don Mosher who wrote (44934)7/26/2001 9:58:11 AM
From: Mike Buckley  Read Replies (2) of 54805
 
Don,

Some of the switching costs come from any loss associated with losing these ten competitive advantages of the WebLogic E-Business Platform:

I'll never be able to do a comparison of features and benefits of the competing products in the app server arena, but I really do have to doubt that BEA's product is so superior to all of the others that none of them offer the same benefits as the ten that you outlined. If the idea you're proposing is that no single competing product offers all ten benefits, I understand that that is indeed possible even though I'd have no way to verify it. If that's the case, we'd need to determine which of the ten benefits aren't currently available in the competing offers and come to a conclusion about the magnitude of the opportunity cost and, thus, the switching cost.

In summary, it's really easy for me to understand that the direct costs of switching an e-business platform (licensing fees, integration, testing, implementation, training and retraining) is immensely expensive. But you would have to present more compelling evidence -- and I'm open minded to the possibility that you can -- that there is a significant cost of switching due to those ten benefits that are not to be found in competing products.

--Mike Buckley
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