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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Raptor who wrote (2493)	10/4/1998 10:11:00 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 4509

Raptor psft can undercut Sap drastically in cost of ownership, so to be honest I dont think it matters how much Sap drops their license fees. Sap could give away their product and psft could sell theirs for $1MM and within about 3 yrs you'd be ahead with psft in my estimation. Sap has some superior functionality however that for some companies can affect the cost of sales. Michelle

To: Raptor who wrote (2493)	10/4/1998 10:23:00 PM
From: Tom Smith	Read Replies (1) \| Respond to of 4509

Raptor, Maybe a strong dollar would give SAP a little room to discount, but it wouldn't really encourage them to do it. Why not just keep prices stable and make even more revenue in marks? Besides, the Morgan Stanley analyst claimed to have seen 70-80% discounts in some cases. The dollar's not that strong. I can't see any reason for it other than they thought they would lose the accounts to PSFT if they bid their regular prices. Here's another thought. SAP reports earnings on Oct 20, the same day as PSFT. So I would assume that SAP's quarter ended Sept 30. The downgrades came on Oct 2, so the analysts were probably looking at contracts signed during the last few days of September. Perhaps SAP felt they needed to offer the discounts in order to make their quarterly numbers. It should be interesting to compare the SAP/PSFT quarterly reports on the 20th. Tom