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Technology Stocks : Information Architects (IARC): E-Commerce & EIP -- Ignore unavailable to you. Want to Upgrade?

To: AChan who wrote (3488)	11/30/1997 10:49:00 AM
From: Jeffrey S. Mitchell	Read Replies (1) \| Respond to of 10786

AChan, it all boils down to supply and demand. If all the studies showing that the vast majority of companies have yet to fully address the Y2K problem are correct, then demand for Y2K related services will skyrocket in the next two years. Common sense would dictate that the top tier Y2K companies will be in a position to charge whatever the market will bear. On the expense side, keep in mind that any "factory" approach, like ALYD's, starts really paying dividends when demand is at its peak and the factory can run at full throttle. That's because it takes almost as much effort to remediate 250K lines of code as it does 1M since most of the time is spent on preparation. [In layman's terms, it's the same concept that, once the printing presses are running, it takes little more effort to print 100,000 papers as it does 10,000.] Contrast that to "body shops" where there is a direct relationship between bodies and lines of code. - Jeff