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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: RocketMan who wrote (14934)	1/11/2000 2:34:00 PM
From: Apollo	Read Replies (2) \| Respond to of 54805

EXDS competition...... So, if the IDC industry growth is close to a tornado, I find it very surprising that the competition would not be a real concern Huh?????? What makes you think I am not concerned about competition? A careful reading of my words from posts in the past month or so will show that I have indicated that BTE seem to be low. Therefore, without much solid information, I am assuming BTE are low. Your post quoted my post, which in turn was a re-post of an answer I received to my questions that included the issue of BTE from another Board (MF, I think). I say again: 1. EXDS is a King, in a market that is tornadoing NOW; last 12 qtrs, EXDS has posted > 40% sequential revenue growth, and enjoys first mover advantages. 2. EXDs is big, at > $15 billion market cap, and has a market share that rivals that of all competitors combined. 3. Barriers to entry are not high; requires building Internet Data Centers, at ~ $40 million apiece. 4. Switching costs are possibly high; clients may not be able to easily switch mission critical servers to new locations; may become entwined with EXDS as their Application Internet Provider, etc. IE, once locked in with co-location, applications, and professional services, just too much hassle to switch. EXDS is also a play on "outsourcing"; outsourcing the web hosting is said to reduce costs to 1/6 of in-house costs for web hosting. The next earnings report is near the end of this month. Let's see what happens. :) Apollo

To: RocketMan who wrote (14934)	1/11/2000 11:00:00 PM
From: Robert S.	Read Replies (1) \| Respond to of 54805

Re: other EXDS competitors: Message 12541037 And lest we forget, who owns a not insignificant stake in the global broadband fiber network buildout?

To: RocketMan who wrote (14934)	1/12/2000 7:29:00 AM
From: DownSouth	Read Replies (2) \| Respond to of 54805

RM, there can be no King/Gorilla in the internet data center market, by definition. The tornado has only begun there, thus the particpants are just now piling in. Only as the tornado progresses will we see an emerging Gorilla or King or Princes. My bet is that there will only be Princes. No company will dominate what is essentially a services industry. There are no barriers to entry except capital to build infrastructure. There IS money to be made by buying a basketful of IDC competitors, but, IMO, you will have to bail out as the competition intensifies and prices fall.