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To: Jan Crawley who wrote (56430)	5/12/1999 10:02:00 AM
From: Sonny Blue	Read Replies (2) \| Respond to of 164684

Jan, you are good and quick like a fox!

To: Jan Crawley who wrote (56430)	5/13/1999 9:24:00 AM
From: Glenn D. Rudolph	Respond to of 164684

Enterprise Software News – 11 May 1999 2 Field Trip Summary We completed our Fifth Annual Software Field Trip last week, and despite the absence of black armbands, the overall tenor of the meetings was decidedly tempered in this pre-Y2K year. Twenty-five buy-siders traveled through the Silicon Valley to meet with the executive teams at their headquarters for face-to-face introductions, presentations and Q&A. In addition, a select group of software vendors from outside of the bay area traveled westward to join us in San Francisco. The pervasive themes, from Axent Technologies to SunSoft, included the impact of the internet on this sector, the proliferation of e-business, and how business models are changing to adapt to and take advantage of this latest computing paradigm. Everyone we talked with mentioned Y2K, but with mixed interpretations of its impact on IT spending for the balance of the year. This week's Enterprise Software News is a brief travelogue of our trip through the Valley for our companies under coverage: Tuesday May 4 th n BMC Software; BMCS C-1-1-9 Price EPS FY99 (E) EPS FY00 (E) P/E CY99x 5 Yr Growth (E) $41.50 $1.97 $2.45 23 22% We met with John Cox, BMC's VP of Investor Relations and Jim Black of Boole & Babbage to kick off the field trip. On the heels of a strong quarter and the recently completed acquisition of Boole and Babbage, the tone of the presentation was very upbeat. BMC's focus on customer value was explained to us, as the company is in the midst of reorganizing along product lines to better serve its clients. Cox stressed BMC's positioning to manage the e-Business environment, stating that, according to their statistics, even 97% uptime results is $79M in lost revenues per year for a typical e-commerce customer. The company hinted at a major e-commerce customer win to be announced in the next month. BMC is modeling license growth on open systems and mainframes at 40% and 20% respectively, although our sense is that the growth from both sides of the business could be better. BMC does not see Y2K as a factor in its business. n Oracle Corporation; ORCL C-2-1-9 Price EPS FY99 (E) EPS FY00 (E) P/E CY99x 5 Yr Growth (E) $24.50 $0.86 $1.06 27 25% Oracle Corporation- We met with Jeff Henley, CFO and Ken Jacobs, VP of Data Server Marketing. Henley opened the presentation, commenting on the irony of apologizing for 20% margins in the face of 7% license revenue growth for the last quarter. Management was bullish on the long-term prospects of the company in terms of pipeline expansion, remaining guarded on the prospects for the rest of the year due to the Y2K specter that continues to haunt the ERP space. Our sense is that the company was more cautious about revenue generation near-term, with a greater comfort level about earnings due to expense management in this difficult environment. Oracle made a case for accelerating applications growth with the rollout of Applications 11i and a continuing their push into CRM with release 3i, which will drive applications growth to more than double the database growth rate. n MicroStrategy; MSTR D-2-1-9 Price EPS FY99 (E) EPS FY00 (E) P/E CY99x 5 Yr Growth (E) $17.44 $0.31 $0.49 56 45% Sanju Bansal, COO and Mark Lynch, CFO of MicroStrategy gave an upbeat presentation to the group, highlighting a key win at Safeway that will enable Safeway to target 10 million customers with electronically delivered promotions via the company's broadcaster product. MicroStrategy will be releasing a major upgrade to its DSS Server later this year, which will enable Broadcaster to reach millions of customers via commercial DSS deployments. The Company also indicated that both Price Waterhouse Coopers and KPMG have moved from systems integration partners to actual resellers of MicroStrategy technology. Because of the strategic importance of e-commerce, MicroStrategy does not appear to be feeling the effects of Y2K as it extends its solution beyond internal decision support. n PeopleSoft; PSFT C-2-1-9 Price EPS FY99 (E) EPS FY00 (E) P/E CY99x 5 Yr Growth (E) $12.81 $0.12 $0.44 107 25% CFO Al Castino lead off a frank discussion of Y2K impact on ERP demand and the e-commerce market's effect on classic ERP pricing models. Senior VP of Worldwide Operations Howard Gwin elaborated on Castino's comments by stating that ERP's hyper-growth is over, regardless of the impact of Y2K, as the market drives front-office applications and e-commerce going forward. Gwin outlined PeopleSoft's newest offering, the PeopleSoft Business Network (PSBN), an enterprise portal that includes an e-business backbone based on PeopleSoft technology and will include third party content to create e-business “communities”. Management sees the remainder of 1999 as a rebuilding year and stressed their strong balance sheet and their ability to re-tool for the coming changes. n Documentum; DCTM D-3-2-9 Price EPS FY99 (E) EPS FY00 (E) P/E CY99x 5 Yr Growth (E) $15.19 ($0.52) #N/A NM 35% We met with Mark Garrett, CFO, Thomas Heydler, VP Marketing Industries and Howard Shao, VP of Product Development at Documentum's Pleasanton headquarters. The presentations centered on Documentum's move into