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

To: wayne harris who wrote (2541)	10/6/1998 12:56:00 PM
From: ratlong	Read Replies (1) \| Respond to of 4509

I believe you have to look at the mid-market for these companies. I totally agree with the post about cost of switching being to high for alot of companies and SAP has a lions share of the Fortune 500. I think the key market for PSFT is the companies with $25 to $250M in revs. These companies require ease of use, flexible technology and low cost of implementation. The /site $ value is lower, but volume can be much higher. The key question here is if you look at the Select Product line approach, they use implementation centers where they install the software offsite and then bring it on site. If they are going to grow this business to a volume business, they will either need to significantly increase the implementation sites of make the implementations very quick and easy. Bottom line is that that it comes down to the cost of implementation. No $100M company is going to spend 1M on product and 6M on services. So, I think the battles are going to be in the mid-market arena, where PSFT can make significant inroads because the high end market is SAP. By the way, on the discussion about SAP/PSFT implementation consultants, the hourly rates are definitely in the $300 +/- $50 range. It is a matter of time until companies train up a cadre of Irish, Indian or Russians to do the implementations for $60/hr, so the cost of service consulting is going to have to drop in the near future.