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Technology Stocks : Oracle Corporation (ORCL)

ORCL 188.62

+2.0%

3:59 PM EST

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To: HammerHead who wrote (7354)	6/9/1998 8:52:00 AM
From: Michael Olin	Read Replies (1) of 19080

A new Server version launch, successful or not, does not really drum up too much business for Oracle. Existing customers with maintenance agreements get the new version for free. They upgrade at their leisure, usually when the x.1 release comes out. I don't see new customers waiting around and saying, "Wow! Oracle8 has all of these neat features that I really need. Oracle7 didn't do it for us, but Oracle8, let's go buy some server licenses!" If a customer is going to buy an Oracle server, they will take whatever version is currently shipping (or one version back). A new tools release can increase revenues as new features and less bugs attract new customers. In either case, Oracle's 4th quarter (which ended May 31) is traditionally their strongest because the sales reps will do whatever it takes (read: big discounts) to book the last few sales and make/exceed their quotas for the year. -Michael

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