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Microcap & Penny Stocks : INNI-I/NET -- Ignore unavailable to you. Want to Upgrade?

To: dwc who wrote (1356)	2/25/1999 12:59:00 PM
From: John Wilson	Read Replies (2) \| Respond to of 1856

jw Analysis as requested... There are two news items that you might refer to, the "Island" deal and the posted article regarding software application outsourcing. Lets do Cayman 1st: This is the whisper deal, that holds oodles of promise. I know what you know, which is not much. The company clearly thinks it has tremendous profit potential. The combination of website creating / servicing and PROFIT SHARING, on what looks like a per transaction basis is a smart formula. Fill in the pure business opportunity, which is a "?" at this point and it could be big. The ISP to host your software apps article: This is a projected industry direction, that is an evolutionary step from the following historical trends: 1. Turnkey applications replacing roll your own 2. Application bundling 3. Move from host based central server to client server distributed 4. Move to common web based user interface (every thing via a browser) 5. Move from costly client server to web server 6. Move to pure web and java based schemes to facilitate "thin clents" 7. The network is the "application", move back to centralized management of applications for cost containment. 8. Outsource server management, web hosting, security management. 9. Hell, I don't even want to own the application, I'll just rent on a per transaction basis! - that's this last article. Implications for pure software companies 1. must rethink business model in cases 2. less impact to infrastructure software vendors 3. more impact to personal productivity apps 4. these companies need to put greater emphasis on services I/Net Specifics: 1. It deals with infrastructure software which would be supplied to potential outsourcers who might utilize the AS/400 platform. 2. It is more a services then pure software company anyway. The article may be viewed as a validation of I/Nets perceived business plan. 3. The whisper deals dynamics of creation, service, and a cut of the action, lends itself nicely to acquisition of alternative revenue streams in light of the "rent an app" direction. 4. CGG ads diversification and sources of revenue that to my knowledge are not impacted at all by the implications of the article. Their website is pretty cool, by the way. (check a few posts back for reference). This new model has challenges that must be met, before viability can be established. good day...jw