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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: ericneu who wrote (13758)	1/4/1999 1:15:00 AM
From: t2	Read Replies (1) \| Respond to of 74651

It's the same reason why MSFT won't be coming out with ERP software. Currently, ERP vendors LOVE MSFT because MSFT doesn't compete with them. Oracle does. Therefore Oracle doesn't get "Most Favored Nation" status with them. Therefore the trend in ERP is SQL Server, not Oracle. This is the kind of problems companies like Oracle and IBM face. They end up putting themselves in competitive situations where they end up hurting the sales of their own products - preventing them from gaining industry wide acceptance as standards. MSFT's strategic management is much better than its competitors. So much of MSFT's software is the industry standard and it is extremely difficult to compete against. I have been making similiar types of arguments. If MSFT were to buy out a cable company, that would guarantee that other cable companies will feel even more threatened and would refuse to include MSFT in their efforts in any way. You are making the same kind of argument here . I agree with your logic to a certain extent. I think in this case, they are already threatened by MSFT's efforts to develop a lot of the software. They feel that MSFT may gain too much control in their business just by developing an Operating System that people get very accustomed to. Cable cos want to bring in SUN and others (set top boxes ) to ensure MSFT does not gain control like it has with the PC. Notice that they don't manufacture PCs -- however -- they do have control. Since MSFT is not going to get its way with cable operators, this is one of options they may be contemplating. Cable has to compete with phone and satelite in the future. MSFT's acquisition one or two small cable cos to develop/improve/test their software would be a great move.The TCI's can then license the software. Cable operators will be in tough competitive enviroment and will want to offer the best services to their customers. MSFT software will get acceptance (if it is a good product) as long as they don't set their sights on becoming major players in cable. If the message is clear to the other cable cos -- there will be no problem. They won't want to become a large cable operator because there will be no profits and lots of competition. MSFT's main goal is to be the only software provider for the cable set tops. The inclusion of SUNW in the TCI deal threatened MSFT. Notice how they embraced cable in the past and are now focussing on fibre optics and phone lines as well since that announcement.

To: ericneu who wrote (13758)	1/4/1999 1:23:00 AM
From: t2	Read Replies (1) \| Respond to of 74651

Eric, As I stated in another post, MSFT is probably not interest in MSN Internet Access for the monthly subsribers charges. To MSFT it is just all e-commerce. That is, get as many eyeballs on MSN as possible. IF you can offer high speed internet access on cable (which only cable cos can do for now), you will get a lot of new customers who like the brand name. Unless lobbying by AOL and others can get cable lines free for them to offer high speed access, acquiring small cable cos may be an alternative which MSFT can afford. This way they may be able to beat AOL and be first among the current ISPs to get in on cable internet access.