Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Len who wrote (3454)	7/5/1999 1:21:00 PM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

Len, What the article doesn't say is that NEON is expected to walk away with 42% of the profits generated in this area in 2000 and far surpasses any competitor... I didn't realize that. Thanks for mentioning it. I was interested that a representative of NEON casually stated he expected MSFT to enter the market. Are they concerned or do they expect to be bought? For the record, that was the CEO of NEON who was quoted. My guess is that he was acknowledging the obvious strategy that Microsoft wants to be in every aspect of enterprise software. I doubt there is a huge amount of concern about that; if there was, nobody would start a company to sell enterprise software unless they were hoping to be bought by Softie. Being bought might be one of the alternatives in NEON's future, so I doubt that management would entirely discount the possibility. But I doubt that it's more than a possibility. Their real wealth will come from being wildly successful on their own. As one of the articles pointed out, the independent EAI company offers a feeling of comfort that they are doing the best thing for the customer, as opposed to the worries the customer has about using EAI solutions that are pre-packaged by the application software vendors. As of todaay I really think NEON desreves consideration as a potentially emerging gorilla. They are certainly in the tornado, have a clear market lead, have some proprietary technology, have formed value chains, and are an enabling technology. Having the information about their market share you just provided, I agree. I have a question about the tornado, though. When I look at the last three years' revenue, it looks like a tornado. I don't know enough about the company to know if the increases in revenue are due to acquisitions or if the increases are the result of internal, organic growth. What's your take on that? --Mike Buckley