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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD

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To: ratlong who wrote (2802)1/20/1999 12:32:00 AM
From: Randy Ellingson  Read Replies (2) of 3115
 
If they have frozen out competitors, then the only reason they would reduce price would be to get blanket adoption by potential customers. When he said they expect to increase penetration by 5X to 10X- is this how they are going to achieve those numbers? Thoughts?

Just a thought, but perhaps Rational sees more potential profits in their services and is happy to increase penetration at the cost of decreasing product margins. Is that likely to be part of their longer-term goals? Which tends to command higher profit margins in this field, product or service?

Randy
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