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Technology Stocks : FirstWave Technologies (FSTW) -- Ignore unavailable to you. Want to Upgrade?

To: Wolff who wrote (1264)	7/19/1999 2:33:00 PM
From: Shege Dambanza	Read Replies (2) \| Respond to of 9677

I agree with you that the revenue/profit impact of this transaction is close to nothing. The bulls will argue that this purchase means Microsoft has "validated" the FSTW approach by "adopting" the technology. It's not quite that, but it certainly is nice to be able to say that Microsoft uses the product. However if they are using the hosted service then the cost to switch to one of Microsoft's corporate solutions (Siebel or Clarify) will be low. Perhaps this division couldn't wait for their turn in the deployment plans. It remains to be seen if FSTW can leverage any return off this boost to their marketing capital. The timing of this release also suggests that Q2 numbers are not good. On the other hand, this announcement may help close some sales in Q3. The number you cited gives some pricing information: $18k/year for say 50 users is approximately $30/user/month. Even with deep discounting this seems low to me. Either the number of users is lower, or the amount is higher. Or both.