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Technology Stocks : Osicom(FIBR) -- Ignore unavailable to you. Want to Upgrade?

To: Grantcw who wrote (6919)	5/21/1998 12:15:00 AM
From: David Pawlak	Read Replies (2) \| Respond to of 10479

Grant, the switching "costs" aren't so easy to quantify. From what I understand, each product has to go through a rigorous testing process prior to its introduction into a "live" network. Once it is finally introduced to its first network and working well, technical procedure manuals are typically written for that particular product (be it the GigaMux or whatever). Once that step is completed and all is working fine, the product is ready for deployment in numerous markets. So, basically, once a product of this caliber reaches that last stage, the company should be pretty committed to it and would really have to have some sort of problem with it in order to go through the time and expense of switching to another product. That said, most companies will also seek out a "second source" and I would imagine they would go through the same process once the primary supplier is up and running. Perhaps the customer decides he likes the secondary supplier more and makes the switch. The point is that once the customer starts deploying the system into his network, he is most likely very committed to the supplier and its product.... at least for the immediate foreseeable future.