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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: John F. Dowd who wrote (44304)	5/4/2000 6:11:00 PM
From: ProDeath	Respond to of 74651

As a percentage of the total cost of a computer, $89 may well be excessive. Consider Compaq's iPaq offering at $500 list, and likely somewhat less at corporate discounts. Assuming the OEM cost of the Windows OS is half what you suggest, around 10% of the unit cost is the OS. If most of my users only need to run a web browser and perhaps some Java applications like Star Office, there is clearly plenty of opportunity for cost reduction with alternative operating systems. With hardware costs continually declining, the cost of Microsoft software becomes a larger and sorer protuberance in corporate budgets with each passing month. That this might result in additional revenue pressure on MS should go without saying, and does not bode well for the future of their stock price unless alternative revenue sources are created.

To: John F. Dowd who wrote (44304)	5/4/2000 6:11:00 PM
From: ProDeath	Read Replies (1) \| Respond to of 74651

As a percentage of the total cost of a computer, $89 may well be excessive. Consider Compaq's iPaq offering at $500 list, and likely somewhat less at corporate discounts. Assuming the OEM cost of the Windows OS is half what you suggest, around 10% of the unit cost is the OS. If most of my users only need to run a web browser and perhaps some Java applications like Star Office, there is clearly plenty of opportunity for cost reduction with alternative operating systems. With hardware costs continually declining, the cost of Microsoft software becomes a larger and sorer protuberance in corporate budgets with each passing month. That this might result in additional revenue pressure on MS should go without saying, and does not bode well for the future of their stock price unless alternative revenue sources are created.