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

To: art slott who wrote (4480)	1/21/1999 6:34:00 PM
From: Arrow Hd.	Read Replies (1) \| Respond to of 8218

IBM still has an enormous software portfolio that is billed monthly versus the one time charge that you see when you buy PC software. December has the largest number of actual S/390 machine installations. Once installed, IBM Customer Fulfillment then audits the complex to adjust for software charges and maintenance billing if affected. If the shipment was an upgrade then they insure the old maintenance agreement is still in effect, and so on. So it will not be until the first quarter 99 that the entire effect of the added software billing will kick in. So in effect, there is a seasonal lag that the street is not smart enough to pick up on. Thats why there are all these little surprises. Services are most often billed monthly too. There is all this continuing revenue that rachets up each month and quarter.