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Non-Tech : Tulipomania Blowoff Contest: Why and When will it end? -- Ignore unavailable to you. Want to Upgrade?

To: Zog who wrote (2436)	1/6/2000 8:59:00 AM
From: Dale Baker	Respond to of 3543

Some of the other examples you cite are more support services (software, consulting), where the barriers to entry are different so the economics may be different. But still, I doubt that excess profits will be made, since there is nothing aside from brand loyalty to keep other firms out. The Internet software business at the enterprise level should be no different than non-Internet software sales. Why did SAP become a giant while others withered? The barrier to entry is product quality, ease of installation and use and then pricing if the products are similar. Selling commodity goods on the Net is a losing proposition due to the total lack of pricing power. But Internet infrastructure is the same as non-Internet tech infrastructure. It just has the that horrible word "Internet" in the equation. AOL - keeps its customers due to value added services and the community it has built. If their customers didn't want to pay for the AOL experience it would have died long ago. Instead they have 20 million subscribers now, up from 18 million a year ago. Free ISP's are the rotten business model. Short NZRO and wait a few months for it to die.