Making Money in Technology
After the Bubble, page 16
A Taxonomy of Technology Businesses, continued
Figure 2: Internet Software and Services public companies ranked by market
capitalization using MoneyCentral Investor’s screening tool.
Certainly, there are other ways to categorize companies—for example, using SIC codes—so I
don’t mean to pick on MoneyCentral. But it does seem a little odd to have Red Hat Linux and eBay
in the same category (Internet Software and Services). These companies employ dissimilar technologies,
and—obviously—have radically different business models. My point is to understand what category a
business falls into, and there is no substitute for careful analysis of a company’s business model
to determine this.
The Ecology of Sectors: B2C, B2B, and Infrastructure
The Internet software companies were the poster children for the great boom. All of these companies
fall into MoneyCentral’s Internet Software and Services category (although some of the companies that
MoneyCentral includes in the category, such as Red Hat (NADDAQ: RHAT), don’t really belong there).
Internet software companies can be further broken up into three sub-categories: Business to Consumer
(“B2C”), Business to Business (“B2B”), and infrastructure.
Continued next page
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