Information Architects (IARC): E-Commerce & EIP Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Information Architects (IARC): E-Commerce & EIP

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Tech Master who wrote (1786)	8/12/1997 11:03:00 PM
From: Jeffrey S. Mitchell	of 10786

TM, the Compuware deal is not just big, it's mind-bogglingly big. Both ALYD and Compuware signed off on a press release with the phrase: "...could possibly add an additional billion* lines of code to our current contracts." And keep in mind that we are talking non-MVS COBOL (i.e. COBOL that does not run an IBM mainframe), which is almost always priced much higher per line of code than MVS COBOL. Let's look at (conservative) best and worse case scenarios: Worse: 500M lines (half the prediction) .20/line (MVS rate) = $100M. Best: 1B lines * .30 (discounted non-MVS rate) = $300M. Assuming a burn rate of $25M per 250M lines, that's a profit of between $50M and $200M over 2.5 years, which is between $20M and $80M per year. If we assume more than a billion lines and/or a higher price per line and/or a lower burn rate per year, then the numbers just explode off the page. Considering that these numbers are in addition to the profit from the likes of MD, 3M and Nabisco, well, the mind reels, does it not? So, yes, it is a BIG deal! - Jeff

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next