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Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! -- Ignore unavailable to you. Want to Upgrade?


To: MulhollandDrive who wrote (26029)11/24/1997 1:41:00 PM
From: Eqmx  Read Replies (2) | Respond to of 33268
 
Betty, Inacom believes in BT.**********
Presently they are mounting an aggressive training and marketing program. I was faxed an internal marketing piece that is also been presented to the IS group.
I was told that Inacom has committed money and training to this product. I will fax the two page brochure Inacom put together to Marshall, maybe he will be able to scan it and post it.



To: MulhollandDrive who wrote (26029)11/24/1997 3:16:00 PM
From: drakes353  Read Replies (3) | Respond to of 33268
 
BP:

In a relatively short time, your argument is going to proven erroneous (a matter of degrees, subject to interpretation, of course).

My argument? Which one? In your mind what will prove me "wrong"? Any large sale? Sales large enough to generate profits? You said we'll find out in a relatively short time. What's your time frame? You gonna give them three more months, six more months, a year?

As far as I know all the resellers have agreed to do is to try to sell BT. They have not bought it for themselves in large volume and it appears that they have decided not to hold a lot (if any) in inventory. They also have not taken a "strategic stake" in RACE, even with RACE on bankruptcy's doorstep. BTW, nice thing about InacomDirect is we can watch inventory and pricing on their website as time goes on. May well prove to be an excellent way to chart RACE's progress.

Having the resellers sign on helps BT's chances but doesn't ensure it's success. You might want to check out how many failed technology products these companies have agreed to market over the last 10 years. Consider paging through the Forbes FYI that was sent out with the Forbes in which BT was mentioned. If you missed it, that edition of FYI was entitled "Failure". All about techno boo-boos over the years. A great read for anyone interested in investing in technology companies.

I hadn't brought up the VPN thing before because until this past weekend I had not seen what RACE was putting in front of customers as an ROI rationalization. On a cost basis BT loses to VPN in any scenario where the client has to make a long distance call to connect to their BT server. Virtually all RoadWarriors would fall into this category. Telecommuters whose homes are a long distance call away from the closest BT server would fall into this group too.

Without any cost advantage (could argue that BT is at a cost disadvantage) BT must be sold on the remote PBX functionality and simultaneous voice/data. Marshall was kind enough to share the ROI piece, now I'd love to see the market research RACE did showing the world wants remote PBX and is willing to pay a premium for it. If the research exists I've never heard mention of it. Marshall, Serafino, anyone out there have that study?

drakes353