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Technology Stocks : Cloud, edge and decentralized computing -- Ignore unavailable to you. Want to Upgrade?

To: Doren who wrote (593)	3/17/2011 9:43:58 PM
From: Glenn Petersen	Respond to of 1685

Doren, It would be hard to argue against the fact that a lot of the cloud valuations are approaching bubble territory. Cornerstone's IPO today provides support for that position. However, I learned a long time ago not to fight the tape and just go with the flow. . . with stops in place. I can understand why a CEO would be hesitant to totally commit to the cloud, so having a backup plan in place is important, even if the backup plan is also cloud based. The data center margins may be thin, but they provide steady cash flows that can be fattened as the data centers add new clients. Earlier this year I posted an excellent analysis of Rackspace's business model and how they are increasing their cash flow by improving their efficiency. Message 27069079 The margins of the application providers will always be thin in their early years because they have to spend large sums on marketing and sales. Regards, Glenn