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Technology Stocks : OBJECT DESIGN Inc.: Bargain of the year!!

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To: GUSTAVE JAEGER who wrote (2096)7/7/1998 8:58:00 AM
From: Mark Finger  Read Replies (1) of 3194
 
>>Note that we're dealing with a $48M investment... Mark, can we still
>>use your 5-10% ratio to find out ODIS' $-share in the project? After
>>all, it seems to be a 1,000 license package.

No, the 5-10% applies to a pure DBMS application built on top of an engine. The above situation also includes hardware and a lot of other applications. Note that the total system includes spreadsheets, graphics, and plenty of other stuff. In this case the percentage for the DBMS licenses will be much lower. I would say that you should figure out what 1000 run-time (as opposed to developer) licenses would be after a reasonable discount rate (say 30-40%). This probably would only involve at best 10-20 developer licenses. What is the list price for a run-time (sometime they may be called "deployment") licenses. I find it hard to believe that they would be close to the $7500 that was quoted for ODIS developer licenses. Note that the RDBMS on Unix tend to be $1500 list, and in the $500-1000 on NT for "enterprise" as opposed to "workgroup" level licenses. Further, 1000 licenses is generally considered to be well above workgroup levels.

If this were a RDBMS case, I would say that the engine licenses would only be around $700K to $1M (1000 seats at $1-1.5K, discounted 30%). What is so misleading about this is that there is so much development (consulting/services) in this estimate. The percentages I gave were for a developed package with enough services to get up and running, not a major new development effort like this appears to be.
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