You asked who was in on STGI's conference call yesterday. Here's
a partial list: Lynx, Underberg Harris, a representative from the
American Stock Exchange, Pennsylvania Merchants' Group, JP
Morgan, Branch Cabbell, Warburg Pincus, Bear Stearns, and Smith
Barney (apologies for any misspellings). I'll add more if they become
available.
Of interest also was a discussion on pricing which I didn't include in
my initial post -- I thought it might be proprietary and wanted the OK
from STGI's IR people before posting. STGI's Tennessee client said
in the RFP the offerer had to have the ability to test converted code
before it was returned. That created a short list of respondents. Some
converted code has been returned to TN already, and the entire job
for approximately 1 million LOC will take 7 to 8 months total. STGI's
CEO says they could have responded much faster, but the client
wants to move carefully, as they will base future contract decisions
on this initial code-conversion and testing experience.
For the Mecklenberg County (Charlotte) job, 1 million LOC is being
prepared for conversion now. This job will be of much shorter
duration because STGI is permitted to set the pace. The Charlotte
job is priced at about $1.02 per LOC; this price does not include
testing -- the client wants to price testing separately.
The job at Logan Aluminum is only for an up-front impact analysis
and risk assessment. It's for $250,000.00 and will take 10 weeks.
STGI's CEO believes they will be in a great position to win the
follow-up conversion and testing work which will involve about
15 to 16 million LOC in mainframe and plant automation applications.
The 15 to 16 M LOC is the amount they've uncovered to this date.
The price for this and other end-to-end jobs, in the estimation of Mr.
Smith, will be $1.00 to $1.50/LOC -- more expensive if work is done
piecemeal.
STGI's IR people reiterated this morning that several alliances with
software vendors are in the offing. |
