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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: rudedog who wrote (251)	3/20/1998 12:47:00 PM
From: jjs_ynot	Respond to of 2578

>>> They will have to allocate an increasing amount of resource to support their existing base to keep customer sat up - MSFT has had to fight this battle and the costs are stunning, rising 10X per year. This is a tough problem once you reach a larger size. Your installed base starts to really eat at your bottom line. You booked the sales and earnings at the time you shipped the product out the door. The expense of the deferred maintenance liability is often not on the books and smaller competitors without these recurring costs are nipping at your heels. The auto makers had to come to grips with this problem and build in the deferred maintenance liability to their profit and loss at the time of sale. Dave