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Technology Stocks : Citrix Systems (CTXS) -- Ignore unavailable to you. Want to Upgrade?

To: mauser96 who wrote (6245)	3/22/1999 10:08:00 PM
From: David Lawrence	Respond to of 9068

I'll follow the thought a little further. Microsoft wants to be in the business of renting applications. Their investment in Qwest is yet another piece of evidence that they want to do it in a big way with a big pipe. So, they divest development of multi-user NT server to Citrix, turning their attention to developing server based applications on a pay-as-you-go basis, along with various content. These apps/content could range anywhere from basic word processing and database apps to CAD/CAM to streaming video to whatever. Same type of cash cow that they have now, except the revenues are from rental vs. purchase. In this scenario, they are a lot less likely to run headlong into regulators if they don't have an actual or perceived advantage at the OS level. All of the applications and content providers will have a level field (platform) from which to deliver their product/service. Sun and Oracle hate MSFT, but I'll bet they'd be willing partners with Citrix. MSFT loses direct NT revenue, but maintains an interest in CTXS so they get a smaller piece of a larger pie. CTXS won't have the same problem with the regulators as MSFT, since they are delivering the OS and extensions, but not the apps. Someone start shooting holes in it.