This is an incredible move for Phoenix, far better than if they would
have acquired Cybermedia and far better than if they'd gone through
what Systemsoft has done in development.
I can't believe they actually got an EXCLUSIVE marketing/
support agreement for the PC manufacturer/motherboard market
from Cybermedia. While SYSF's SystemWizard is still in beta testing,
CM's First Aid has been out on the street for almost a full year.
Cybermedia's sales are almost as large as SYSF's right now, growth
of about 900% since last year. They've been a top 5 or top 10
retail software package for quite awhile and have earned great
credibility.
CM just finished a private placement with a VC firm that apparently
was involved in Netscape's original financing. CM also just signed an
OEM deal for First Aid with NEC (who I assume will now be supported
by Phoenix, based on the press release).
Just imagine what kind of resources Cybermedia will have when
they go public (which I think they're filing for now).
CM is convinced that 90% of all PC support problems are software
related, not hardware related. Their product is intended to support
those problems locally in the PC. After reading all I can find on
SystemWizard, I've concluded that it will solve primarily hardware
problems locally and dial out to a remote site for software problems,
an additional step. If you think about it, both Phoenix and Systemsoft
are known for developing system software/firmware that deals with
hardware components, not application software. I think the CEO
of CM is telling the truth when he says that Phoenix is "the perfect
partner" for them. Just like the deal with Virtual Chips, this marriage
is one of great synergy, both partners coming from opposite ends of
the same problem.
Remember also that Phoenix co-developed Win95 plug and play
with Intel, Microsoft and Compaq and also was a key contributor
to Desktop Management Interface (wrote the spec in late 1994
for the standards group). SystemSoft's product DEPENDS on these
standards that Phoenix developed. This is another big reason
why Cybermedia is so excited about working with Phoenix and
handed them this business on a silver platter.
Is there money in it for Phoenix? Probably as much if not more than
what SystemSoft will see. They don't have all the overhead that
they would have incurred if they'd developed it from scratch (and
had to support the software), yet they get all the engineering income
for customization work along with marketing income.
Mark, I frankly can't put into words how I feel about this deal. I
recommend that everyone go to "cybermedia.com" and read
everything on it and I think you'll get the picture that Cybermedia
isn't some fly-by-night outfit. Then look carefully at the deal
Compaq just did with Phoenix on USB, that Virtual Chips just did
with Phoenix on PCI, USB, etc, and the motherboard relationship
with Intel and you should get a fairly good idea on how significant this
deal is. Add that to the half dozen major smart phone/special PC
deals just announced by Phoenix (with Geoworks, Radisys, and
Intel) and you start seeing a pretty good undervalued situation. I still
don't have confirmation on Phoenix working with Intel on their help
desk product for LANDesk, but my feeling is that they are connected
in some way (I'll be listening to the Sept. 24 Intel conference carefully).
If Phoenix is tied in to that too (they did license DMI software to
Intel several months ago), that would be even better.
In summary, if you can still get PTEC at $15, I'd put every dime you
could into it. But I'm not a licensed professional broker, so my
advice is meaningless. |
