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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: Erik T who wrote (5791)	5/28/1999 9:31:00 AM
From: Charlie Smith	Read Replies (1) \| Respond to of 20297

Erik: Question is: "How much revenue?" The "EC" consulting group which was recently set up within CKFR to help billers implement presentment will generate some sales dollars. If you're saying that presentment will never be a major, growing part of the sales stream, I think the jury is still out on that. Major billers have the resources to do it in house in lieu of a service bureau, but certainly not all will. Will CKFR capture some of that? Maybe. Certainly many mid-size and smaller firms will see outsourced e-billing as a net positive, particularly if it links seamlessly with their accounting systems. Business model here is ADP w/payroll. E-payment saves time and small amounts of money for consumers, but biggest net savings is time, which for most consumers goes in the nebulous category of "opportunity cost". E-billing, on the other hand, saves business large amounts of G&A labor and supplies/postage/printing over time. IMO, it's therefore easier to make a business case for billing services than payment. Just a question of whether the customer wants to do it in house or not. CKFR is betting that presentment drives payment, and that they will profit on the payment side. But it seems to me the knowledge base which they're currently building in presentment could serve them quite well with smaller billers (who are more likely to outsource) down the road. Awfully long answer to a short question. Charlie