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

To: DownSouth who wrote (34420)	11/7/2000 2:31:15 AM
From: tinkershaw	Respond to of 54805

But--that has nothing to do with large numbers. It has to do with the market size, growth rate and competition. Explaining or predicting the growth of a company does not rely on any law of large numbers. The only aspect of the law of large numbers is trying to find markets that can accumulate this enormous amount of capital at this sort of growth rate for such an extended period of time. This is the first such market like this I have ever heard of. But perhaps it should not be surprising. We just did a case study between the cost structures of Federal Express and Airborne. After tearing apart FedEx's cost structure, the thing that stood out the most is that FedEx spends as much on IT as it spends on every other aspect of its business including aircraft, trucks, advertising, and a few other categories that escape my mind. Okay, an occasional new processing center might run close to the amount of the IT budget, but that is not an every year expense. Given that IT is by far the largest budget items even for an old economy firm like FedEx, this tells you an awful lot about where the vast majority of our economy is going. Information. In the end the benefit that Cisco provides is better ways to move information quickly. A value proposition that won't go away anytime soon. Although it remains to be seen how nimble Cisco can remain as the network becomes more optical, optics attempt to take on tasks previous handled by routers, and as silicon takes up more and more space on the router. Tinker P.S. Anyone here heard anyone with any possible solutions regarding the Border Gateway Protocol Routing Tables problems? The problem is that the amount of addresses on the web is growing so fast that within 2-3 years each router will require gigabytes of memory to be able to route through the entire directory. Apparently, from my reading on the topic this may provide yet another area for a discontinuous innovation in the future.