Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: JRH who wrote (12349)	2/7/1998 6:06:00 PM
From: Sowbug	Respond to of 77400

I have heard and read that Cisco doesn't make the best products. I agree completely -- in fact, someone was trying to sell me on ASND a while back (at $45 on the way down) because it had better products than Cisco. (I'm in ASND now because of the momentum, but will jump ship at the first sign of trouble.) Many SI participants are also computer aficionados, so they appreciate better technology, superior specifications, more megahertz, and all that. Unfortunately, that outlook distorts our perception of the viewpoint of the majority of computer users. We often think they appreciate the same things. In fact, their entire thought process is, plain and simple: Get me away from this computer as soon as possible so I can go home! Thus, they care only that the computer be as transparent to their work habits as possible -- no file conversions, no new desktop metaphors, no innovative input devices. To them, a computer is like a microwave or a refrigerator: buy it, use it, and forget about it. It doesn't matter whether something comes out that's twice as powerful, or even worse, revolutionary. So whoever gets to be the default choice for a computer component has power far beyond even its current large market share. To me, some of this seems obvious, but it's really easy to argue in favor of an upcoming tech company's stock because its products are so much better than those of the industry leader. I didn't follow Informix's rise and fall, but I understand they were the choice to unseat Oracle for a while. I'd apply the same reasoning (again, with 20/20 hindsight) to them. Other picks, based on the "product quality doesn't matter" theory: America Online. It's irrelevant how bad it purportedly is. Middle America thinks AOL is the Internet. At Home, if they would get off their asses and try rolling out their product at anything faster than glacial speed. Especially if the rumor about the Road Runner merger is true. Intel. That one's obvious, but nothing suggests the company will ever go away. Microsoft. Oracle.