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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 113.97-1.1%12:39 PM EST

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To: Thomas P. Friend who wrote (4559)6/12/1998 11:42:00 AM
From: MulhollandDrive  Read Replies (2) of 93625
 
Thomas, I understand your points about the low end MMX machines still dominating the market, but what I would take issue with is your question >>Tell me exactly which software I cannot run with a 233 MHZ Pentium MMX system with 32 MMB of DRAM.<< Perhaps the more relevant question to contemplate going forward is which software applications are and will be written with the next generation computing speed in mind? Is there a point when computing productivity gains are diminishing and thus will not justify the expenditure of new hardware? Possibly, but as a business person that makes decisions about hardware and software choices facilitating the growth and profitability of my business, I can assure you that if I have the choice of more advanced systems that leave what I'm currently using in the dust, I'll be a buyer if I recognize the productivity gains and cost savings.

I spoke with a broker in San Antonio about a year ago (Bear Stearns) that told me that they still had 286 machines on their desks! I personally bought 286 and skipped 386 to buy 486 and ultimately Pentium. My point is , just based on what I hear anecdotally from my business contacts there is a very large "pent up" demand for computing power out there. Unfortunately, that's part of what is extending the current upgrade cycle and we are still getting the "flat" earnings warnings (or worse). Most of us had the experience of buying what we thought at the time was the latest technology, only to have "the new improved version" available 6 months later for the same or even lower cost. This is the thinking that causes a Bear-Stearns to be using antiquated 286 machines still, instead of Pentium. But you can be sure they will upgrade, (if they haven't already) and when they finally do hopefully they will have the foresight to be buying machines ready for the next wave of software computing capabilities. Basically, I don't think I agree with your premise that since the current array of software applications run fine on MMX that demand will be soft for the next wave. I lean more toward the thinking that when the software developers write the next killer apps, there will be plenty of buyers for the machines to run them. Sorry for the long post, back to lurking. bp
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