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Technology Stocks : BORL: Time to BUY!
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To: David R who wrote (7289)11/11/1997 10:22:00 PM
From: David Miller  Read Replies (1) of 10836
 
>> An overlooked side to this is the whole new services business BORL will get.<<

I doubt if it is overlooked. But once again, it is not automatic. You could choose - as SAP did some years ago - to cultivate a downstream channel for these activities, keeping your investment to the technology itself. In SAP's case, they created a $10bn services industry around their own $2bn product revenues - a body of people and businesses who relied on SAP's success for their own success. Not surprisingly, these people and businesses became major advocates for SAP technology. A "go-it-alone" services strategy may well have had a different impact on sales, either better or worse for SAP's bottom line, who can tell?

Such an approach may or may not be appropriate today, these are the type of decisions that have to be made. It will be interesting to see over the coming months whether Borland have what it takes to lay down the winning strategy for the current market conditions.

david
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