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 +Companies in the Business/Online Services industry were primarily enterprise software providers whose products focused primarily on internet based interaction. Examples are Microstrategy, a business intelligence software provider; Computer Programs and Systems (CPSI), a provider of medical record software for hospitals; and Travelzoo (TZOO), providing travel oriented services booked online.
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 +The business models for these providers differ greatly. Some actually install entire systems (hardware and software), train employees, run maintenance contracts, etc., while others are simply a stand alone service that businesses can use on a one time or repeating basis. Besides the recurring revenue earned from maintenance and support, the customer has likely spent significant time and resources to evaluate competitors, learn the system, incorporate their data into the system, etc. This creates tremendous lock-in benefits that provide the vendor with a significant moat.

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Companies in the Business/Online Services industry were primarily enterprise software providers whose products focused primarily on internet based interaction. Examples are Microstrategy, a business intelligence software provider; Computer Programs and Systems (CPSI), a provider of medical record software for hospitals; and Travelzoo (TZOO), providing travel oriented services booked online.

The business models for these providers differ greatly. Some actually install entire systems (hardware and software), train employees, run maintenance contracts, etc., while others are simply a stand alone service that businesses can use on a one time or repeating basis. Besides the recurring revenue earned from maintenance and support, the customer has likely spent significant time and resources to evaluate competitors, learn the system, incorporate their data into the system, etc. This creates tremendous lock-in benefits that provide the vendor with a significant moat.

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