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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lee who wrote (3764)	10/27/2002 2:48:06 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 25522

What is the cost in setting up as a competitor to PSFT? Tech salaries are low and there are plenty of very large tech companies with tons of cash in the bank and many underutilised employees. Not to mention the fact that a good proportion of the client base is happily set up with systems that will see them thru the next few years anyway. I don't mean to imply psft is a great buy here... imo he has seen his lows as most of software but other areas are leading for now, I am not in psft currently. Its just that somebody challenged me on another thread as to valuations and psft was an easy one to look at since they were public in the early 90s while sebl and sap were not (at least not on a US exchange). It takes about 5 years and billions in R&D to develop a competing order cycle product to Sap, orcl 11i, psft. Like much of tech, barriers to entry are substantial, its not a knock-off business. The issue with these companies is whether there is a customer base out there willing to pay the $5mm pricetag required to generate a profit for the software vendor. Lizzie