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Technology Stocks : Red Brick Systems

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To: 5handicap who wrote (292)11/11/1998 6:00:00 PM
From: Dave Yenne  Read Replies (1) of 304
 
Looks like a called this one way back in June...

>>For Red Brick to turn things around, which I doubt they can, management needs to do the following:

- Improve marketing. Red Brick has been terrible at this since the begining. A few months back I made this same statement and used their own web site as an example. The customer success stories are at best a year old. One person responded with more current stories (still old) but had to go to another vendors site to get them.

- Establish strategic partnerships. Red Bricks glory days were based on superior DB technology for data warehouse applications. They have lost that edge. Today every major DB vendor supports the same features and techniques that gave Red Brick the edge. R&D costs money and Red Brick has very little. In order to differeniate themselves from the competition they should establish partnerships with the leading OLAP, ROLAP, and MOLAP (tools) vendors with product bundles for complete DW solutions. There may also be a market for DW solutions tailored for the ERP market, i.e., SAP, BAAN, Peoplesoft. Note: The other DB vendors are already doing this.

- Position themselves for acquisition. I don't believe Red Brick will survive on its own. Perhaps CA would be interested.<<

The Informix deal addresses points 2 and 3 right on the nose. Back in June and earlier I was getting bashed for telling it like it is for Redbrick. Don't know if the Informix deal will be a big winner. But without it Redbrick is on a slow road to its own death. The 2 deals they announced this week wouldn't have happened if it weren't for the Informix merger coming up.

Picking up Redbrick anywhere at $3 or below is great way to get Informix shares at a great discount.
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