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To: Chuzzlewit who wrote (137220)	7/21/1999 3:38:00 PM
From: GVTucker	Respond to of 176387

Chuzz, I just saw your post regarding ASP, so a part of my earlier post you obviously have addressed. One final thought about ASP: this is the hottest area of venture capital interest. Nothing is close. Usually, venture cap is a decent leading indicator of trends in this business. (Note that thin client deals such as ORCL's NC never really attracted the big venture capital.) If ASP were destined to a small niche, I don't think the Kleiner Perkins' of the world would be throwing this kind of cash at it.

To: Chuzzlewit who wrote (137220)	7/23/1999 12:24:00 PM
From: rudedog	Read Replies (2) \| Respond to of 176387

Chuz - Although the argument is strong for "fat" clients in a large corporate environment where big pipes allow a variety of advanced multimedia and teaming arrangements, thin clients are a growing market in the small and medium business segment, and in certain large customers like banks and insurance companies where a "locked down" desktop is actually preferable and the much longer hardware lifetime and much lower initial capital expense (thin clients from Wyse are as low as $250) is a significant economic value (36 to 48 months as opposed to 12 to 18 for "fat" clients). The market for systems designed around thin clients has been somewhat constrained by a lack of applications written to this architecture but that is changing. In the last 12 months, growth of the thin client market has been more than twice that of the standard PC market. It is something to consider... The play that CPQ has done in this space is to drive the overall system sales, often partnering with Wyse, with the goal of getting the server business. I believe that DELL will go the same way. The question is whether the fatter server revenue makes up for the reduced client revenue.