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Technology Stocks : Systemsoft Inc. (SYSF)

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To: Steve Borg who wrote (2041)7/4/1997 2:17:00 PM
From: Bill Fischofer   of 3529
 
SystemWizard, First Aid, etc.

The reason why Wall Street has cooled to these initiatives is that MSFT and INTC have been pushing hard on their "Zero Administration" and NetPC initiatives. One of the keys to success in investing is not to step in front of oncoming locomotives. SYSF and CYBR are essentially in the same boat here, except that SYSF has some core business that MSFT is unlikely to make irrelevant with their next press release.

The other factor at work is that there is far less need for these "patch and pray" products than there used to be. With new sub-$1k PCs readily available there is far less need to try to keep that old 486 clunker going any longer. Rather than fight with that old jury-rigged assemblage of parts, folks are tossing them and just buying something new which simply works right from the get-go (and runs rings around the old iron to boot).

So I really see no future for FirstAid or SystemWizard. Think about it: there is no way to move PCs into the mass market if they need this sort of crutch. Would you by a TV that needed a SystemWizard to keep running? The key service component is exemplified by CYBR's Oil Change product, but given that this is so central to MSFT's future I fully expect that function to be coopted by the time Memphis hits.
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