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Technology Stocks : INPR - Inprise to Borland (BORL) -- Ignore unavailable to you. Want to Upgrade?

To: Carolyn who wrote (4030)	1/12/2000 4:50:00 PM
From: Dennis Nicks	Read Replies (4) \| Respond to of 5102

There is always the chance that the big guys will develop competing products. There is nothing stopping Sun or IBM from doing that. With the widespread adoption of a product like Visibroker, it might be safe to say that the industry doesn't mind licensing the building blocks to produce a product. If Sun or IBM wants to compete in an ASP market, they could build from scratch or license from Inprise. The selling point for Inprise is being independent and open to supporting (and optimizing for) different technologies. If the products are truely optimized as components, or building blocks, there is certainly a time to market and scalability advantage. Will this model work? I'm not sure, but I like the concept. If you really want to see whether the market is adopting this model, watch the service revenues in the Inprise earnings release. INPR reports the service revenue separate from licensing, my rationale is that an increase in licensing revenue from ASP tools won't be noticeable at first (signal to noise problem). When we see a significant increase in service revenues, I think we can assume the ASP market segment is getting hot. What's your take? Dennis