Sondo and to all who have researched investments in DDI.
As a starter I am short in DDI thus the following may be biased but IMO it is not.
As background, I did spend a large number of years developing and making joint marketing arrangements with companies like a DDI and a major hardware vendor so I do have some experience in what is written and what "may be" written between the lines.
Additionally, Unisys today is primarily a company that is building its future on consulting, system integration, project management with a multi vendor focus. The portion of their revenue from HW is growing smaller and smaller. They thus should be viewed as more of a consulting firm than a hw vendor. This has implications on their relationship with DDI an d of course who gets what revenue from Y2K
I spent time researching the Unisys side of this saga and some interesting things emerge when comparing the Unisys view of the Y2K world and the DDI view. The DDI web site makes it look like Unisys is really out their pumping the DDI solution to the exclusion of all others.
The view from the Unisys web site is quite different.
Some comments taken from the Unisys site are below.
"No single vendor has all the right tools for every IT environment. Unisys Year 2000 incorporates a broad base of proprietary and commercially available software tools to support the multitude of software languages and platform requirements in your multi-vendor computing enterprise."
BTW Excuse the caps below, I am not shouting just trying to make my comments more easily seen..
NOTE THE WORDS "BROAD BASE OF PROPRIETARY AND COMMERCIALLY AVAILABLE SW TOOLS." THIS DOES NOT IMPLY THAT DDI IS THE ONLY BULLET IN THEIR GUN.
IN ANOTHER PLACE ON THEIR WEB SITE, THE REAL CONSULTING FOCUS OF UNISYS STANDS OUT. I HAVE JUST LISTED A FEW WORDS FROM LONG DESCRIPTIONS OF THINGS UNISYS OFFERS.
"These packaged services offer you a selection so you can pick and choose what you need. You'll begin to understand the steps you need to take to successfully transition your applications to the new millennium."
"Your Unisys Year 2000 Millennium Solution may take advantage of some or all of these deliverables-focused services:"
* Year 2000 Strategic Planning
* Program Management--
* Tools Acquisition--Unisys maintains a Center of Excellence that continually evaluates new tools and products available for Year 2000 projects. Year 2000 services include proprietary and commercially available tools for automating Year 2000 assessment, correction, testing and programming activities. We can help your IS staff select the specific tools for your IT environment that will increase productivity and reduce the cost of the year 2000 update.
* Vendor Coordination
* Programming Services--in addition to helping you determine whether the Year 2000 software modification is best done in-house, by your IS staff alone or with the help of on-site or off-site contractors, Unisys can provide the management oversight necessary to enable compliance with your MIS departmental standards and/or other software quality standards.
Unisys has a comprehensive Year 2000 solution, combining our domain knowledge, proven methodologies, management expertise, extensive resources and strategic partnerships with other leading Year 2000 solution providers. The result is a suite of services designed to complement your organization's needs and provide the best possible resolution to the unique problems presented by the Year 2000.
IF YOU READ ALL OF THE ABOVE, YOU BEGIN TO REALIZE THAT UNISYS IS POSITIONING ITSELF AS A GENERALIZED Y2K VENDOR THAT WILL PROVIDE AN APPROPRIATE SOLUTION, NOT JUST THE DDI SOLUTION.
ALSO, IN ALL OF THEIR DESCRIPTIONS, DDI WAS NEVER MENTIONED!!
I DID FIND ONE REFERENCE TO DDI IN THEIR WEB SITE. CLEARLY THERE MAY BE MORE BUT I DID SPEND A LOT OF TIME LOOKING. THE COMMENT IS BELOW.
"Unisys and Data Dimensions, Inc., (DDI) have teamed up to bring you an excellent starter service and tools kit that help you comfortably initiate the millennium process."
NOTE THE FOCUS ON "INITIATE THE MILLENNIUM PROCESS."
IMO, UNISYS will get a lot of federal business and it's International equivalent, but it appears that they will use any tool that they feel will best fit the solution. Trying to determine how much royalty DDI will get per sale is not the point. UNISYS IMO will get the lions share of the revenue and that the DDI arrangement will benefit UNISYS in getting into the door ("initiate the process") and then sell, sell, sell project management, conversion, consulting, etc.,etc. etc.
Finally, I think DDI is a really good company, have a good product, will make money with y2k but NOT enough to satisfy their current valuation. BTW, thank the Lord I am a recent short because this puppy really shot up over the past!!!
Have a good day and may the best "researcher" win.
Bob T. |
