Humbly report, CR, regarding Wonderware and PlantY2kOne:
John Jenkins, TAVA CEO
November '97 Conference Call
Question: "What do you see in revenue for the future on
your CD?"
John Jenkins: "Well, the opportunity (let me roll it
out that way for the moment), first of all when we sell
tools, its a combination of the CD, which is sort of the
key to the compliance data base - so there's our pricing
model. ÿBut, basically ... $4000 for the CD. That
includes the methodology and several support tools.
Then to switch on and have access to the vendor
compliance database, your talking about $5000 per site.
The CD price is per seat.
A company may purchase the CD, but that does not give
them the right to use the CD throughout the
organization. Each location the CD is used, the company
must pay additional seat charges. Seat charges are
very common throughout the software industry.
So in a straight forward model, you've got somebody who
buys 1 CD. He pays $4000 for that, he's going to pay
$5000 for the vendor compliance data base access, and
he's going to pay $200 per vendor compliance report.
Most organizations that we're looking at on the small end
of the quote average range would have at least 100
unique devices in their facility. So its 100 x $200 =
$20,000. He buys some training along the way. You can
get to a model that says between $30,000 and $35,000
on an average basis per individual facility.
The total facility count out there is, on a
conservative basis, between 70,000 and
100,000 facilities that have to address this
problem. So its a very large number at the high end.
We won't reach all those facilities and not everybody's
going to pay retail price.
When you sit at the table with somebody that's got 600
sites to address, there's a fair amount of negotiating
pressure from his side of the table. But I think we've
used a conservative number of about $20,000 per site
for a straight up tool purchase by a client. I still think
that number works and I have no reason to push it one
way or the other at this point.
The mix of tools and services is hard for us to pin down
today. We've got a wide range. Some organizations have
absolutely no engineering staff and they want to buy
services wrapped around tools. Others have solid
engineering staffs and are really looking at tools and
projects.
70,000 - 100,000 Facilities need to
Address Y2K on Plant Floor
$4,000 CD ÿPer Seat
$5,000 Database Access
per Site
$200 per Vendor
Compliance Report
$2,000 Search Engine for
Software
Does NOT include any engineering time from the TAVA
engineers.
Engineering rates have gone up 66% since last year to
approx $160/hr. Rates are projected to escalate.
This pricing structure is a good estimate of the revenue
associated with CD.
Pricing is always Subject to Change
From :http://www.zahran.com/tava/12.htm
______________________________________________________________________________
John Jenkins, TAVA CEO
February '98 Conference Call
Most of you are aware of the Wonderware relationship.
And I said two weeks ago at the annual meeting, the
disks previously shipped to Wonderware are now just
beginning to trickle in to the direct-user market,
having gone through their distribution system. Feedback
from Wonderware is that they want another 20,000 disks
from us to send out to that market.
[ . . . ]
Stuart Goldberg: ÿ Okay. And then can you- you said
Wonderware wants another 20,000 disks. Can you give us
a review of the history on how many have been shipped
and how that relationship has proceeded as far as
turning shipping disks to the distribution system into
customers at this point?
John Jenkins: ÿ I think the number that we shipped
originally sort of mid- to end-November to Wonderware
was 15,000 disks. Wonderware is behind in their
deployment of those disks, not because they got them
late from us but their own Factory suite 2000 product
in terms of packaging. And I'm not really sure what
some of the issues are, but they were behind in- at
least behind the schedule that we thought we had heard
from them in terms of getting them out.
They also went out through their distribution, in some
cases, not until after the first of the year here. So
in many cases, as I said earlier, they are just now
getting into the hands of the direct customers and
clients. We've had some people from Europe,
interestingly, call us, take advantage of the- get the
disks registered, get them opened up on the front end.
And we're actually re-engaged with Wonderware next week
to get a clearer picture of where all that product is
in their own pipeline. But we do know from discussions
with them last week that they're not yet fully-
certainly not fully into customer hands.
We also have a parallel program that we're mounting now
to go through the Wonderware distributors and ensure
that the- make sure that the client is aware of what
he's got and why it's important and support that
deployment.
From: vcall.com
______________________________________________________________________________
From: #reply-3975148
Dennis Reed - March 30 '98
I just received a Wonderware Y2K sales packet. TAVA is very well
represented in:
1) Introduction letter;
2) Insert of a two page press release re WNDR/TAVA;
3)TAVA two page color brochure re PLANT Y2K ONE
The brochure is very well done! No other cos. are discussed in this packet beside WNDR &
TAVA.
IMHO WNDR is strongly endorsing the TAVA technology. I was frankly but
pleasantly surprised to see such a strong TAVA reference.I know weeks ago there was
some concern re the Wonderware purchase and possible impact in the future but this info
suggests that WNDR is still on board.
______________________________________________________________________________
Svejk
(GL-15 applies: digiserve.com ;-)
