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Technology Stocks : How high will Microsoft fly?
MSFT 475.70+0.7%12:21 PM EST

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To: Kelly G. Splitt who wrote (4578)1/2/1998 9:56:00 AM
From: X-Ray Man  Read Replies (1) of 74651
 
Kelly, I did not say there wasn't rapid growth. Did not say you
would read it anywhere. I am saying that contribution to the
bottom line (percent of profits) is less than what some, especially
in forums like this one, have suggested to expect. In other words,
NT 4 was going to make big $$$, now it is NT 5, but I don't think
they have even recouped all of the R&D costs yet for NT, in terms
of direct sales. However, it may be that MSFT will never see
a direct contribution from NT, but rather via all of its other
server software and support services that require NT and the MSFT
"total solution". In this sense, MSFT is looking to take its
profit in the server market from the likes of IBM and Oracle.

Most people I know that are running NT are using it as a replacement
for W95, albeit an expensive one, because W95 is not usuable. That
is, it is NOT always running on a server machine, but as a workstation.

Again, I did not say more rapid growth in sales was expected. The
question is how will it contribute to the bottom line. I admit I
have not seen a good published analysis of that anywhere.
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