Time to Reload Software?


Q: Thoughts on PeopleSoft (PSFT )?

A: We have an avoid recommendation on PeopleSoft. While the company has maintained reasonable profitability and has a solid balance sheet, we're primarily concerned over the company's recent double-digit license-revenue declines. We believe the company is becoming more of a service-related technology company, with services dominating the revenue mix, and thus believe that the company deserves a discounted valuation to its peer group.

Q: What do you think of Indian software IT companies like Wipro (WIT ) and Infosys (INFY )?

A: I don't cover any of the Indian software companies. However, more and more of the companies in my universe are looking to outsource operations in India


Steve Ballmer, Power Forward
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