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Technology Stocks : DRIV (DIGITAL RIVER). Get in on internet IPO. -- Ignore unavailable to you. Want to Upgrade?

To: Platter who wrote (1219)	3/7/1999 2:34:00 PM
From: Rick	Read Replies (2) \| Respond to of 3198

While your snippet had some good points - such as DRIV's focus on vertical markets in the future (ie - being a distributor of software to companies in a given industry) there were many things that were not valid. It mentioned - "per-seat" model is perfect for Digital River, as the download model makes it easy forcorporations to add more users as they grow. But that model is facing a lot of pressure lately. That's a real crock. #1 -- as a percent of DRIV's sales - per seat software delivery is very low. #2 Even if #1 was not true - per seat software delivery is as strong as ever as thin-client really hasn't taken off & doesn't show signs of taken off. THe other statement "The other major problem facing Digital River is that eventually, software publishers will likely create their own downloadable services, as tools are created to make it easier to build such a site and prices come down. The major advantage Digital River has is that it gets a publisher into the internet download business immediately. That advantage will not last forever." That's another crock of BS. There will always be businesses who want to outsource software delivery -- esp. ones who are selling lots of different titles & don't want the hassels of dealing with all the different vendors/the accounting etc. In fact - the number of businesses who will want to outsource software delivery will be growing by leaps and bounds. Just think of all the entreprenuers who would rather focus on creating their software rather than deal with distribution/sales/and billing. As to the comment of shrinking prices in the software business - that is laughable. Walk in to any software dealer and tell me that the prices are any lower than they were 5 or 10 years ago. Not! Which by the way - is irrelevant in any case - since many firms will always relish more distribution channels for their software & will always be willing to pay a small percentage to someone else to expand their sales - even if their "take" is a bit less. DRIV sales will continue to grow like a banshee due to simple concepts called "leverage" and win/win.