Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: KeepItSimple who wrote (95608)	3/6/2000 3:58:00 AM
From: dbblg	Read Replies (2) \| Respond to of 164687

re: B2B I'm not as well-versed in the newer companies like CMRC and ARBA as some others here, but i2 is my third largest position. Couple of thoughts: 1. Leaving aside the transaction model, software companies aimed at rationalizing the supply chain could reasonably be expected to outperform in this environment. Companies' pricing power diminishes as information moves more quickly, so they had better make dam' sure they harness the same forces to lower their own costs. The old-fashioned business of selling supply-chain software of one kind or another is a very, very good one to be in right now. 2. The potential for transaction-based models has certainly provided considerable sizzle to the story, since such models seem to resolve many problems with the traditional (enterprise) software biz model such as the shortage of qualified bodies to implement and sell, the ghastly perpetual licensing treadmill, etc. Consequently, the stock prices reflect a much higher PSR applied to future transaction-based revs. than to software license revs. I think this is a reasonable speculation. For the foreseeable future, companies happily pay a transaction fee if their net costs come down enough to justify it. I suspect that many organizations will find that kind of expenditure more palatable than yet another request for a big software purchase from the CTO. I had some trouble understanding how you justify your AT&T analogy, but this is likely because I'm kind of tired. I'll leave it there...