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.

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

To: Thomas Mercer-Hursh who wrote (51217)	5/3/2002 8:00:34 PM
From: techreports	Read Replies (2) \| Respond to of 54805

One would have a hard case trying to demonstrate the replacement of the mainframe ... have you noticed just how large that market still is? Not so awfully long ago I heard someone claim that something like 70% of the computer-based information in the Fortune 1000 was stored on mainframes. Minis and PC did a lot more to create new markets than they did to displace the mainframe. We keep hearing about how mainframes are going to go away, but it just doesn't seem to happen. One might think that server farms and such were another indicator that their time was finally over, but I'll bet that 20 years from now there will be more MIPS in mainframes than there is today. Thomas, thanks for the comment. That's very interesting. You'll usually find that the quiet facts usually tell a different story that is so often reported on Wall Street and Main Street. 70% of the Fortune 1000 may still use mainframes, but what about the rest of public and private corporations? I am more interested in the overall market, but I wouldn't be surprised to hear that mainframes are still very popular. As an analogy, if you lived in an Amish community, 100% of the population uses horses. That's why I'm more interested in the overall market. Although, I'd bet that the Fortune 1000 makes a large portion of tech spending, but it may only be 2% of overall spending. If so, then your 70% of mainframe usage in Fortune1000 wouldn't be that impressive? I don't know, just talking out my butt. This is a such a sufficiently new and unplumbed market that this may actually help Siebel by validating the concept. rationally that doesn't make sense..? If the concept offered value to consumers, they'd buy it. If I was alive in 1920 and I saw a Model T. I wouldn't wait for GM or Chrysler to offer a competing product. I'd look at the Model T and say, "Gee...I gotta get one of those." Same with ERM. If it offers value, Siebel will sell it. If this is the case, it is in Siebel's interest to have competitors come in late to this market as they develop their product and get market share, ect..