Posted this to SH, copied it to here...
I think this article begins to put a better focus on the future... we already knew Compaq had begun a major initiative for wireless.
We now see Compaq and MS moving into ASPs big-time, and we know Infowave has the same plan, as a complement to its client/server revenue stream.
Here's the article...
news.cnet.com
Anyone care to speculate on the revenue stream generated by ASP use? I'm into another stock, EWD.V, that uses the ASP model.
The interesting thing about it is that it allows the user to get in cheap. In EWD's case (dispatch), instead of spending $2-3K to set up radio, microphone, wiring etc., the user just gets any internet enabled wireless device (Glenayre or RIM 2-way pager), pays a monthly fee, and everyone's in business.
For the software provider, there's no retailing costs, less marketing cost, lower support costs.
In addition, I liken the ASP model to the Vegas model -
keep the skim light, but go for big numbers - you get big revenue - in EWD's case, for example, it's around $500 per user, per year.
Take Infowave for the Net, and start applying those sort of numbers for ASP usage...well, take a deep breath before you look at the bottom line! |
