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To: Michael L. Voorhees who wrote (19255)	9/3/1999 2:05:00 PM
From: Just_Observing	Read Replies (1) \| Respond to of 64865

>>Regardless, if they implement the client/server office they will be cannibalizing 40% of their earnings. They're screwed. Their business model is too reliant on essentually a single applications earnings. Would you choose to cannibalize such?<< If I may point out, MS Office is 40% of revenues for MSFT and that does not automatically make it is 40% of earnings. My guess is that it represents a bigger portion of earnings because there are several areas where MSFT loses money. My guess would be that MS Office may be as high as 50% of earnings if it is indeed 40% of revenues (as stated by the London Financial Times today).

To: Michael L. Voorhees who wrote (19255)	9/3/1999 4:02:00 PM
From: Reginald Middleton	Read Replies (3) \| Respond to of 64865

If MSFT competitors had a cavalier attitude such as that, they would get eaten alive. It is very easy for MSFT to make Office a web based model and lose no more than 30-35% of thier current Office revenue. The problem is that 35% of a whole lot is a lot. I can't go into detail, but MSFT is at the top of the food chain here. There biggest disadvantage is that any change in business models results in their loss since they practically have everything from the get go.