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

To: Jordan A. Sheridan who wrote (50662)	10/5/2000 10:52:55 AM
From: alydar	Respond to of 74651

NOVL has a portfolio of products too. So whats your point. It's the quality of the products that counts the quantity. Bob.

To: Jordan A. Sheridan who wrote (50662)	10/5/2000 10:54:38 AM
From: Harvey Allen	Respond to of 74651

Does Corel + Microsoft = Linux .NET? With development of the Microsoft .NET platform the main reason for its investment in Linux-boosting Corel, Microsoft has effectively bought itself a "Linux .NET division," rather than having to build one from scratch. It will have Corel's existing pool of Linux developers -- now presumably less concerned about the solvency of their employer -- working on Softy's partial behalf. By Nico Detourn (TMF Nico) October 4, 2000 When Canadian software firm Corel Corp. (Nasdaq: CORL) temporarily postponed a scheduled reorganization announcement last Friday, the company declined to offer a reason for the short-notice change of plans. Now we know why. Corel announced Monday a strategic relationship with Microsoft (Nasdaq: MSFT), a rival for whom Corel has not always had the kindest words -- but that was then. Corel's president and CEO hopes for a fresh start in his company's relationship with Microsoft. "Both companies have had their ups and downs in the relationship in the past," said Derek Burney. "This alliance represents a new chapter." It's a new chapter for Burney as well, who until Monday had been serving in his positions on an interim basis only, having taken over following the August resignation of Corel founder Michael Cowpland. Burney negotiated the deal in which Microsoft will buy 24 million non-voting shares of Corel for $135 million, or $5.63 per share, giving it 24.6% equity ownership in Corel. The deal also settles unspecified legal issues between the companies. Word of the deal Tuesday sent Corel's stock soaring over 90% above Monday's close. The infusion of Microsoft's money saved the firm from an ongoing cash crisis that forced it to lay off employees just to stay afloat. Impressed with these developments, the Corel board decided there was no need to search for a new president and CEO "since Derek," its chairman said, "is clearly the right person for the job." The deal calls for Microsoft and Corel to develop, test, and co-market new products built around the Microsoft .NET platform, the Web-based software "vision" behind its current development efforts and around which the company is restructuring. What Corel brings to the table is its experience with online software distribution and the Linux operating system. "Corel has long recognized the potential of the Internet to speed up the delivery of applications and services,'' Burney said. "By leveraging Corel's development expertise and popular product line with Microsoft's .NET platform, we believe we have found a great combination to accelerate this process." Paving the way for that, Corel also announced Tuesday a new organizational structure aligned with its main product groups and new vice presidents for those groups. A new VP for corporate marketing and branding was also announced. Linux .NET Corel is best known for its CorelDraw illustration software and for WordPerfect, the erstwhile leader in word processing. The company has more recently been a big booster of Linux, marketing a Corel-branded version of the open source operating system. As an alternative to Microsoft's Windows, Linux has a growing base of supporters and is available for free, in unbranded form, to anyone with the interest and the patience to download it. Corel was also an early supporter of Java, the Sun Microsystems (Nasdaq: SUNW) operating system (OS) and programming language that was also positioned as a Windows alternative. By any account, Linux is at least a minor irritant and challenge to Microsoft, who will now have a more substantial foothold, and a more direct financial interest, in the Linux marketplace. With development of the .NET platform the main reason for the Corel investment, Microsoft has effectively bought itself a "Linux .NET division" rather than having to build one from scratch. It will have Corel's existing pool of Linux developers -- now presumably less concerned about the solvency of their employer -- working on its partial behalf. Subterranean intrigue blues But this is Microsoft we're talking about, and what would a deal be without a subterranean layer of intrigue? Microsoft's Corel investment has echoes from its 1997 investment in Apple (Nasdaq: AAPL). The $150 million cash infusion to its most legendary rival made Internet Explorer the default browser on the Mac desktop, and gave Apple a commitment by Microsoft to continued development of its Office application suite for the Mac OS. With both Apple and Corel, the subtext of these strategic investments is how they help strengthen a struggling rival and ensure competition in the marketplace. By some analysis, doing that makes Microsoft appear less dominant, monopolistic, evil, and all the other fun things Big Bad Bill & the Boys are supposed to be, which is supposed to keep their critics quiet and the Feds out of their hair. Naturally, the parties deny that such crass purposes lie behind these deals, and they wouldn't fess up if it were true. But Microsoft seems to have the knack for trouble over the very things these deals are meant to forestall. So how effective the strategy was in the case of Apple, or might prove to be with Corel, is open to discussion. fool.com P.S. Check out November Wired Magazine for Trial commentary.

To: Jordan A. Sheridan who wrote (50662)	10/5/2000 11:33:38 AM
From: johnd	Read Replies (1) \| Respond to of 74651

Windows2000 attach rates are apparently increasing, per note from RS this am on a report on MU..> interesting.