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Technology Stocks : Firstwave Technologies, Inc. (FSTW)
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To: Roger A. Babb who wrote (133)12/8/1997 9:59:00 PM
From: choban  Read Replies (1) of 1205
 
Roger, I recently saw the BROC model work successfully in a similar business. There were two companies that were trying to sell Work Flow software to the Navy and they took opposite approaches. (The Navy's ships are like clients and their shore sites are like servers as a way to compare it to BROC's model.)

The bigger company only sold seat licenses, so their market penetration was limited. The smaller company gave away their software to all the ships (clients), but charged all the shore sites (servers)licensing fees. Almost immediately, the small company penetrated the clients, and volume on the servers started increasing, so the Navy made a decision to only buy this small company's software to standardize the work flow software throughout their fleet. The moral of the story is that this small company established market penetration by making it easy for their clients (like BROC's approach). These clients then increased their server hits which created a revenue stream of licensing fees.
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