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snapshotGoing into 2001, Internet and related technology companies have taken a pounding. Does this mean that the Internet and Web are not viable on a long-term basis? That investors will not support new technologies and new initiatives? Not so, says NASDAQ's performance over the past few weeks. Only those organizations that are debt-leveraged and cash negative are being pounded in the trenches. The Internet is slowly entering the Mature phase of the product life cycle. What adds inconsistencies that appear to be Growth cycle characteristics are more attributable to the 6 month generation of new software, not the industry itself. The foundation for product success in a Mature cycle center around branding and service levels, combined with conservative financial practices. Pricing starts to level off, due to the shear number of competitors in the arena. The process of buying market share through wholesale discounts and leveraged financing typically only works in the Growth cycle. The failure of HarvardNet and Vitts Networks in the last month appears to be the adoption of a business model that leads to IPO, while running consistently in the red. A great technique in a Growth/boom cycle; the company usually is bought by a niche competitor or merges with a company looking to expand into a new marketplace. In a Mature phase, capital dries up faster than new clients can be brought on board. Our viewpoint and consulting advice over the last five years to our clients for Internet-related services has not changed. Select a technology partner with a long-standing history of survival in a volatile market. Chances are, they've already faced both good and bad times, and understand fundamentally that core service is the key to exceeding customer expectations and continued growth. newest sites launchedwww.pubsnet.com
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