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Technology Stocks : FirstWave Technologies (FSTW) -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (7208)	12/20/2002 4:27:39 PM
From: TEDennis	Read Replies (1) \| Respond to of 9677

Bob: re: if CA's MO has been to buy small competitors to get their installed base, do you expect ACCPAC to do the same thing and what are the implications for FSTW? An interesting question, and one that I've been pondering. ACCPAC doesn't really need to "buy customers". They already have several thousand users of their non-CRM applications. So, they can probably do a pretty good job of "viral marketing" just with their existing client base. It wouldn't surprise me to see some of CA's clients with non-ACCPAC CRM apps migrate to the ACCPAC solution, either as part of a "full court press" by ACCPAC's sales and marketing folks, or as part of a "flight to quality" (in other words, normal attrition to better integration). However, CA's history does indicate some further well researched acquisitions (or, more likely, vulture-like feeding on the weaker competitors as they struggle for survival). I'd be willing to wager a bunch of money that they won't be going after companies like 1stOrder, so FSTW's options aren't TOTALLY destroyed. Regards, TED

To: Oeconomicus who wrote (7208)	12/20/2002 4:41:58 PM
From: TEDennis	Read Replies (1) \| Respond to of 9677

Bob: re: FSTW has said it's plan is to grow through acquisitions. If ACCPAC is shopping in the same market, FSTW's going to have a tough time striking any good deals I don't think FSTW's plan is to acquire competitive CRM companies. At least I hope it's not. Instead, I expect them to hunt for small companies that provide products and services that complement FSTW's rather skimpy market basket. They could do that through an acquisition or through simple alliances. I won't delve into their history in those particular categories, but let's just say their track record is splotchy at best. Let's just assume for a minute that CA/ACCPAC and FSTW do stumble across the same acquisition candidate (unlikely, in my opinion, but ...). If you were a small business owner, struggling to survive, and had the choice to join the ranks of CA/ACCPAC or the ranks of FSTW, which would you choose? The answer to that question is really not as black and white as it might first appear. CA/ACCPAC stability vs FSTW potential growth. In option one, your employees survive, but any significant growth is stunted. In option two, you're risking everything on an 8 year old company that hasn't exactly lit the world on fire. But, if it works well and the combined companies grow significantly, you succeed beyond your wildest dreams. That kind of decision is what makes the difference between successful business people and also-rans. The sad fact of the matter is that the majority of the risk takers end up with nothing. That's life in the fast lane. Regards, TED