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

To: DownSouth who wrote (15916)	1/22/2000 9:45:00 AM
From: Seeker of Truth	Read Replies (1) \| Respond to of 54805

"I'm not sure the ggame applies to service providers." The book specifically says it does not. It says that computer service providers, like accountants, business consultants, lawyers etc. depend on execution only, At the end of the day they can be replaced if they don't perform well. I see that and also your point about product sellers having a better return on equity and profit margin than service providers. Service companies can go on forever IFF they execute well. But it's not the gorilla game.

To: DownSouth who wrote (15916)	1/22/2000 11:08:00 PM
From: pekos	Read Replies (1) \| Respond to of 54805

EXDS <<3) the switching costs are small>> Only if duplicate servers are affordable for the company which rent the space. One have to duplicate everything, from hardware to software to switch to another "provider". No easy task. IDC-Providers are in a services game because they are comparable to following businesses: rent a room (cage, box etc.), rent a sysop (reboot computer, restart services) optional, rent a technician (computer need sometimes repairs) optional, rent a security guard (entry guarding), sell bandwidth (getting IP-Adresses, Internetconnection), rent a consultant (how to use e-commerce etc.) optional. Did I forgot any service? Peter