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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Gary Ku who wrote (5068)	6/25/1998 7:05:00 AM
From: Rachel M. Kuecks	Respond to of 93625

IBM (the best positioned competitor) can develop something but making it a standard is another issue. The design would have to have significant architectural advantages in order to gain a dominant share (It would have to force the other manufacturers to pay IBM a licensing fee as it wouldn't make any sense for IBM to give it away). Even though RAMBUS is small, their model pools the resources of all the DRAM manufacturers by charging development fees (over 100 million in aggregate so far). I don't believe that APM was ever the leader in either volume and certainly not technology for disk heads but they were an efficient manufacturer. RDRT/IBM/SEG have been around for at east a few years. But even if they were, by being an IP company, RAMBUS does not compete with the manufacturers which gives the non-IBM companies a big incentive to keep RAMBUS or some other third party as the leading developer. The alternative is to have your competitor dominate your market. So I believe there will be significant financial resources from companies that are not able to spend as much as IBM on architectural development.