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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Bill Jackson who wrote (5781)	10/30/1997 12:10:00 PM
From: David Semoreson	Read Replies (3) \| Respond to of 213173

Long thoughts on AAPL/ORCL synergy ORCL has great products, strong management and a tenacious hold on corporate America. The most important thing for them going forward is to expand use of their database products. They have championed NC's to accomplish this, but the message is really only directed at big companies who know the name Oracle and need this kind of power. They need to have individuals shift to networks rather than desktop machines. ORCL needs brand names promoting NCs in the three key segments for NC's - school - home - business. AAPL has great products, ?!#@! management (everyone read this months Wired article?) and a decent position only in the education and graphics segments. The most important things for them going forward is to change the desktop paradigm because they cannot beat MSFT on the standalone desktop of corporate America, and to secure the stronger markets. They need a new solution for schools - which they have in the form of Mac NC's (familiar GUI) Rhapsody servers and E-mates. They need to keep and improve its PowerPC based desktop for graphics (and home/business users who are so inclined) as a cash cow. They need to gain serious business credibility for Rhapsody as server software. And they need to figure out how to build hardware timely & cheaply. Even though WinTel users boo Mac, the Apple name has strong recognition for design and quality (notwithstanding the 5300 problems). KNOWLEDGE UNIVERSE (KU) is focused on education & training, but is privately held, so relatively little is known about them. Clearly deep funding is there from Milken & Ellison. Ellisons motivation is to boost use of ORCL product, and Milken wants to help improve the world. They have announced deals with TCI for the pipeline, bought several software and training companies, but don't have hardware and server software yet announced. They have also hired a serious growth CEO in Joe Costello. THE SYNERGY ORCL gets a great brand names and existing distribution from AAPL for one of the key segments for NC's - schools. AAPL gets new products to manufacture to help achieve volumes, new places to gain market share and therefore visibility for the Mac and for Rhapsody, KU gets the an OS/database system that works and easy switchover for schools and homes. I used to think that NC's had their uses, but I would alwasy want "personal" computer. But now, the more I think about NC's and the ability of Rhapsody to login to your own personal "Finder" from any NC, the more I believe that I would want to have this kind of system from home/offices/travelling. It clearly is the way for the future for most users. These synergies are strategic, not operational. Therefore a Joint Venture & Licensing should suffice as opposed to merger. These 3 each need what the other has! PIXAR has great products in rendering and great connections with Disney, but the connections are not necessarily required or substantial (which isn't to say that its not desirable or possible, or that it wouldn't explain the recent conflicting comments about Jobs as CEO !) ... constructive comments only, please!