Cybermedia has grown from almost nothing to about $7 million per
quarter since they released First Aid last year. They claim to have
sold about 1 million units (I think all retail). They just signed up NEC.
Cybermedia, the market leader, who has an actual track record in
what SystemSoft is moving into, claims that 90% of PC problems are
software related not hardware related (see www.cybermedia.com).
In Volpe, Welty's analyst report of SystemSoft, they quoted SS as
saying that almost all software problems would be dealt with at a
remote location with SystemWizard. Based on Cybermedia's claim,
that leaves only 10% of SystemWizard problem resolution to be done
without remote diagnostics (hardware problems).
By requiring 90% of problems to be resolved remotely, doesn't that
severely limit the practical use of the product? What percentage
of PC users are currently using the internet or regularly use modems?
Certainly everyone that is reading this, but I think we're a minority.
VW's SystemSoft report also said SystemWizard is based on DMI
(Desktop Management Interface).
Did you know that Phoenix Technologies developed the DMI BIOS
specification? Here is a quote from their November 14, 1994
press release:
"We are very pleased with Phoenix Technologies' initiative in
developing the DMI BIOS specification. A DMI BIOS will provide
a hardware abstraction layer by being system independent and
platform specific," said Shannon Gray-Voigt, DMTF chairperson
and Architecture standards Marketing Manager at Intel Corp.
The press release explains that DMI BIOS "will provide information
and access to real time attributes of key system components to
various management applications and operating systems. This
information is used by MIS managers for tracking and managing
corporate computing assets, remote support and service,
troubleshooting user problems...."
Phoenix licensed their DMI software to Intel in February.
I'll agree that the market seems to be there. Even Intel is addressing
it with their help-desk module to LANDesk to ship in October.
What makes SystemSoft inherently more capable of producing
this type of product than Phoenix, based on the above info.?
Do you believe that Phoenix has taken note that their smaller
competitor's market cap is now 3 times theirs and that there seems
to be a big demand for this type of product and begin to re-evaluate
their strategic plan? If not, why wouldn't they?
Is there anyone out there that knows how much NEC is paying
Cybermedia per licensed OEM copy?
Mark, I don't know where you get your info. about PCMCIA
engineers at Phoenix turning over quickly, but you apparently know
something. Where are they going when they leave? Any particular
companies? My impression is that Phoenix is starting to take back
the PCMCIA market quickly from SystemSoft (which represents
about 60% of SS's current business, according to SS info). SS has
become too arrogant and complacent since the euphoric stock
ride started happening. Does anyone know if they're starting to
have beer parties every Friday?
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