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Jason Wood

Tom,

HP, in my opinion, is most certainly getting ready to roll up more software functionality. That's why they hired Tom Hogan away from Vignette.

As you know, IBM is arguably one of the biggest influencers of nearly all facets of software deployment now [tools, middleware, database, vertically focused apps, enterprise apps via IBMGS].

Getting to the heart of your question, I think we WILL see more privatization. Private equity is massively larger than VC [in terms of $$$$], which makes sense since private buyout funds typically are buying mature companies with some scale, whereas VCs are funding companies in their nascency. The software market is maturing, that's an unavoidable truth. With that will come more opportunities to bring now public assets in house so management teams can make the tough decisions to optimize these businesses for cash flow and no longer pretend to be growth companies beholden to making quarterly analyst estimates.

J

Tom Foremski

You make an interesting point about privatization...

And I've long wondred why someone isn't doing a roll up strategy. Let's throw EDS into the mix and maybe Sun and or HP and we have a new "IBM".

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