Title: FW: [PEN-L] New Business Model

I currently work for a large financial corporation, and most of the new sotware programs we currently use are owned, hosted, serviced, and maintained by the parent company and most interactions occur over the internet. We pay a yearly rental fee. I think this is certainly the wave of the future in the financial services industry where I currently work, probably both in terms of software and hardware.

Jayson Funke

I imagine they’d supply the kind of computer svcs needed by large corporations or by governments—svcs for which security, fault-tolerance, reliability are key. Such things are difficult/expensive to implement and their service would be that rather than B of A hiring consultants/programmers to do the job for them, they’d hire Sun in the same way that they pay Pac Bell to make sure all their telephone needs are taken care of.

They’d be competing with IBM and Microsoft. I imagine the target customer base would be govt and large corps. I don’t quite get how falling equip prices would queer the deal. The real big expense in computing (I think) is programming/admin/support rather than hardware.

Joanna

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