Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Dolfan who wrote (6271)	3/23/1999 8:03:00 PM
From: Mike Buckley	Read Replies (2) \| Respond to of 9068

I've given more thought to possible acquisitions. I've got two ideas, one that I don't think will happen and one that might happen. The more I think about the idea that Citrix might purchase Softie's Terminal Server business, the less I think it will happen. If a settlement with the DOJ motivates Softie to make decisions about Terminal Server, I don't think the motivation will be to sell that technology. Microsoft has said from the very beginning that they will defend to the last day their right to innovate. To be coerced into selling TS or anything related to NT reduces their incentive in the big picture to innovate. I don't think Softie will agree to it. If Terminal Server is part of a Softie settlement, it would be that Microsoft would agree to market it separately rather than imbed it inside NT. Doing so, Softie would accept the compromise that software (such as the browser) will never again be imbedded in the OS. That would mollify those who think imbedded software offers an unfair ability to monopolize a market. In either scenario, Softie doesn't end up selling TS to Citrix. Now about an acquisition possibility that in my thinking is the most likely of all the ones I've seen suggested. I could see Citrix purchasing (or building from scratch) an Applications Service Provider (ASP). This is a rapidly growing business concept that makes it possible for small- and medium-sized companies to use enterprise software that is otherwise beyond the capabilities of their resources. The enterprise software company licenses their product to the ASP. The ASP hosts the product on their servers, delivering it to the customer for a monthly fee. It's a natural fit for Citrix's core competency of delivering client-server solutions. As always, just my thinking. --Mike Buckley