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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: cfimx who wrote (26557)	1/20/2000 10:07:00 PM
From: tiquer	Respond to of 64865

Well, when msft sells software in three years it WON'T be on CD. They won't have that COST. <g> Of course the reason this is so is the same reason Microsoft may have other issues to deal with going forward... Read.. "The Network is the Computer" Sorry you didn't quite get that case of Bud yet.. Cheers Roger

To: cfimx who wrote (26557)	1/20/2000 10:28:00 PM
From: QwikSand	Respond to of 64865

It looks as if they can't leverage EXISTING resources, they have to add. That's not atypical, in fact its the norm. If they could leverage the operations, the return on CAPITAL would rise, and it isn't. But this may be just a lull. Well then, I think this just leads back to the basic bone of contention. From a Sun shareholder's point of view (or at least my point of view) it had better just be a lull, because all the spending that's been going on (Forte, StarDivision, whatever else) has been done with the purpose of establishing precisely a more highly leveraged model, the same one you're predicting for M$FT in 3 years, only better because in the Sun vision, Sun owns the big servers the model runs on, and the end-user's costs that make up M$FT's highly leveraged profits are presented to the him as, at least in part, free; buried into an all encompassing hardware/software/services solution which Sun and some combination of partners will offer (and M$FT will too or be out of business). If Sun doesn't have that framework together in the 3 years you're talking about, their margin will be zero. I am waiting with baited breath to see all this acquisition spending they are doing and have done translate into not just new products, but a new business model with higher margins. Everybody's gunning for the ideal, the most highly leveraged model of all: get a little taste anytime anybody does anything. It's a matter of who gets closer first with their respective approaches IMHO. Thanks for your answer. --QS