To: JMD who wrote (2522 ) 4/7/1998 11:36:00 AM From: Geoff Read Replies (1) | Respond to of 10852
RE:****off topic**** Mike, From my experience on the Web, I would say the following companies have the best shot at being major e-commerce players when the whole Smart Card thing hits big... though a lot of this stuff isn't going to happen before Y2k, the Y2k problem is really getting the most attention, and has the most resources devoted to it, from IT staffs and developers. Once that problem is done with, this smart card/e-commerce stuff will boom.... 1) Verifone (through HP) - if you already own it, hold it tight 2) Verisign (not related to Verifone) - IPO was hot, they are pretty much THE leader in digital certificate/signature (i.e., they verify you are you and are their product is the equivalent of a physical signature) - well positioned for the rise of ACH transactions via the Web. Also will be a big provider of digital signatures for Smart Cards (like Verifone's digital wallet software -- Verisign provides the certificates to put in the wallet). Though, just so you know, Verisign (VRSN) is up 214% since the IPO and trades at $44/share 3) Key Tronic Corp - (Nasdaq:KTCC) is a potential competitor to Verifone. According to this week's Internet World, has keyboards ready with smart-card readers -- but "the people who put the hard cash on the table don't appear to want to put smart cards in their IT budgets this year." 4) Pandesic - (I don't think this company is public) a former joint venture between Intel and SAP, has troubles now, but can turn around and become a software powerhouse in the ecommerce arena. 5) American Express - they are at the forefront of the ecommerce movement, though not as crazed as Visa (Visa is really the nutcase driving this whole thing, after all, they are the biggest). American Express has a huge member base, and SET protocols will make transactions safer (though IMO too safe for current bandwidth -- transactions take too long). Amex should do well here. 6) AOL. I know, I know, but man are they successful. They fought off MSFT, and won, and now are a necessary partner for e-commerce ventures. Just look at online book biz, Amazon is on AOL.com home page, but Barnes & Noble is the "official" bookseller of AOL (its actual online service). Everyone is paying big bucks to get exposure to AOL's users. Look at Telesave, the phone company that signed up 500,000 new accounts through a joint promotion with AOL -- "AOL long distance" - you may have seen those ads. They paid $100 million to cobrand with AOL, and have paid AOL more because of how successful the endeavor was! Gemplus, Datakey, Entrust Technologies (a competitor to Verisign), and GTE (yes the telecom company) are also well positioned for this boom. I know a lot of people at Verisign, we're actually working with them very closely -- so I'm a little biased, but there is enough room for everyone right now. Hope this helps.... geoff