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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: Arrow Hd. who wrote (3830)	9/15/1998 3:14:00 PM
From: J R KARY	Read Replies (2) \| Respond to of 8218

IBM's GNS sale may be pre-emptive considering the DOJ's move on MSFT Though MSFT predicts victory , the 10/15/98 trial may result in MSFT being separated into 3 core businesses , OS , MSN , Applications . IBM's Global Network Services sale eliminates any MSFT argument that owning MSN , a world-wide ISP network like GNS is critical , using IBM as a example . What we do know is that IBM has stated its intent to reclaim the PC market . FWIW my DOS speculation centavos leans toward IBM's ultimate use of the $5 bln GNS sale to be used in the PC area . Jim K.

To: Arrow Hd. who wrote (3830)	9/15/1998 3:26:00 PM
From: ToySoldier	Read Replies (3) \| Respond to of 8218

Arrow, My only response to your idea of IBM buying out the Java language and its full rights is that if IBM ever were to do that (and I seriously do not think that is close to being in their heads) the main benefit to Java would be lost. The reason that Java is is becoming one of the most potentially properties in the industry is because it is open. Currently, even though there is a custodian for Java (Sun) the continued enhancement of Java is coming from contributions of several OEM sources. If IBM were to wrap their arms around it and say "its mine" then Java will lose its appeal and you have just destroyed what you felt was its most inspirational aspect. I think IBM has more importan things they could do with their cash. My feeling (IMHO) is that IBM should strengthen aspects that they are completely weak against MSFT in. Therefor, I strongly believe that IBM should seriously consider buying out NOVL. Here are the reasons: 1) IBM is one of the biggest JAVA and CORBA players to push and support in the industry. NOVL's products NetWare and NDS products are all developed to take full advantage of Java and CORBA. In fact, NOVL's senior management are Eric Schmidt (a founder of Java from Sun), Chris Stone (headed up OMG which is CORBA), and a few other ex-Sun big-wigs. 2) IBM's NOS (OS/2 and Warp) are near-dead products regarding market-share. NOVL's NetWare NOS is still the largest market-share player in the industry (although MSFT has eroded a good portion of their lead). IBM's huge account ownership and superior marketing capabilities could make NetWare's superior product reverse the NT fad very quickly. 3) IBM could very much take advantage of NOVL's large Directory Services (NDS) market-share lead and product maturity to leverage many of their current product offerings. 4) IBM could integrate Managewise into the current Tivoli product. Currently, Tivoli's Novell product support is terrible - if almost non existent. 5) Many of NOVL's other technology leading solutions could be leveeraged and integrated into IBM's current offerings. 6) By IBM having superior and market-leadiing Network infrastructure products secured from the NOVL input, IBM would reduce its dependence on MSFT's directions and product offerings (including their arrogance in the industry regarding "we will set our own directions and to hell with you" attitude). I would think that this is a threat to many of IBM's business lines that they cannot control Intel based directions or have an alternative to the MSFT technology strategies - which in many ways are in conflict to IBM (i.e. DCOM, mutated Java, Active-X, etc.). The only issue to address is what to do with Groupwise and Notes. Groupwise still hold a large number of seats (approx. 13million) vs Notes' approx. 26million seats. Dont have an easy answer there. Anyways, these are my thoughts on what to do with the $4Billion. Toy