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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: contax who wrote (6534)	10/22/1999 2:51:00 AM
From: lkj	Read Replies (3) \| Respond to of 10309

"When I toured the company in June and heard about their expansion plans, I wondered how they were going to staff their very ambitious plans with talent. ..... but also to help tailor their products to achieve design wins. By buying out ISI they will now have a bigger pool of technical personnel to help them achieve their plans to be a billion dollar company in 4 years. Karim, Here is my take: If VxWorks is kicking pSOS' butt, then why do we need to buy ISI to gain pSOS users to switch to VxWorks? By purchasing ISI, we are getting a lot more talents. But not all of these talents would automatically be working on VxWorks related projects. Imagine yourself as a pSOS user for many years. What would you say if WRS tells you that you have to switch to VxWorks? (There are a lot of nasty words come to mind.) So WRS will have no choice but to continue to support pSOS, until the demand of pSOS dies down, which could take much longer than a few months. If talents are the only thing that we are after, $400 million for 200 engineers is a hefty price. I remember that Cisco placed its office right across street from IBM to steal talents from IBM. If WRS is really superior to ISI, attracting 200 ISI engineers should be a lot easier than spending $400 million. (I know that attracting 200 ISI engineers is more easily said than done, but $2 million per embedded software engineer is over priced.) And for the $400 million we spent, there is no guarantee that the top engineers and managers at ISI will stay. Companies like Cisco buy other with complementing or superior technology. We are buying an inferior product for a hefty price. Considering that WIND is a beat down stock, this purchase is even more costly. This buy does not make sense to me. Khan