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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (15977)	1/30/2003 2:15:27 PM
From: yard_man	Read Replies (1) \| Respond to of 19219

software or PCs by themselves -- too short-lived to produce any lift to profitability. First, think about enterprise software from a micro sense and then a macro sense. What's the purpose of the software? I'm going to get skewered here for presenting my simplistic view -- and feel free to correct the nuances -- but don't do it without adressing what I am going to say in general -- Enterprise software helps "enterprises" manage the supply chain in the most cost-effective manner -- it should increase efficiences by reducing costs and thereby enhances profitability -- Is that even close? I understand that it helps to support generally JIT processes -- yes, I'll admit for the individual firm this can produce increased profits or reduced losses depending on the current situation of the individual firm ... (but does it generate such cost enhancing benefits mostly on the first application or upon each succesive upgrade) But what is the macro effect?? I submit that the macro effect is that companies use few inputs until they are absolutely necessary -- it tends to prevent accumulation and begins a you first sort of thing -- to be sure this is a short term proclivity, I am talking about. But as far as expanding a business and generating more revenues -- the only industry -- perhaps -- for which more revenues are generated -- is the software companies themselves. This is not a net revenue generator for the company who purchases the product -- it is a cost reducing -- not revenue enhancing investment. Again, I say -- no foundation for increased revenues for anyone except the SW co. Now you say it is indicative of a whole new upgrade cycle in PC equip -- does that really make sense? If I buy software that need more hefty hardware to run, why in the heck would I buy the software well prior to the purchase of the hardware -- if I need them both?? But from a larger perspective -- PCs and software are rather small part of the overall economy and they are both cost enhancing products -- they do not generate revenue for the purchasers absent other types of capital equipment and spending.