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Technology Stocks : Corel Corp.

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To: A. Hayer who wrote (697)6/18/1997 10:06:00 PM
From: Scott Volmar   of 9798
 
A.H., The growing excitement over Suite 8 is exhuberance enough, but Corel Exec's would be wise to exercise a little caution and foresight with respect to Microsoft's next move. You have mentioned that Microsoft has used a bi-annual cycle for suite releases, the next due out in 99. Corel has indicated that Suite 9, due out next summer, may be its last Windows version. Watch for Microsoft to create a little "January Effect" of its own. I believe they will surprise us all with a suite upgrade for release this January. Why? 1. To add MMX technology into the package. 2. To make the suite run faster and more efficiently to compete with Suite 8. 3. To optimize "Outlook" quickly to build on the PIM-Suite connection. 4. To duplicate some of WP8's features. 5. To catch Corel and IBM off-guard. 6. Microsoft will not wait 18 months to release a new Suite with Suite 8 eating away at its corporate marketshare. (Not even by a little bit.) Corel should not move too many employees to JAVA too fast, but be prepared with an improved Suite 9 to release by mid-January 1998. There are some desirable features not yet found in WP8 that could justify a quick release with special upgrade pricing. The full version could yield a higher price. "Developer Beware" is important to consider in this fast paced and unpredictable industry. Microsoft has sold some 16 million copies of Office 97 between its launch in January and Corel's release of Suite 8. Had Suite 8 been available in January this year, Microsoft clearly would have sold fewer copies with competition from Suite 8 during the five months in between. Imagine what the earnings for Q2 might have been if Corel could had captured a couple million of those suite upgrades during that time. Having used Suite 8 for almost three weeks now, I like it more and more each day. I'm getting attached to the property bar and the version manager. Up, Up, & Away! Scott
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