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Technology Stocks : Open Text
OTEX 33.01+0.5%3:59 PM EST

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To: Bill Sherman who wrote (120)12/20/1996 1:45:00 AM
From: Tyler Lawton   of 1195
 
One area of recurring income is software maintenance. For 15% of the purchase price per year, you get the latest and greatest version of Livelink. Plus, you get to talk to their tech support people if you have questions. This is pretty much an industry standard price.

I hear there is pretty good money in customization of Livelink. Every large company does things a little different, so they always want things changed. OpenText has a bunch of programmers around the country that provide these services if the companies don't want to invest the resources to do it themselves. I think they bill out at $150 an hour which adds up quickly. I've been doing customization on Livelink for a year at QUALCOMM. Livelink has so much capability that departments want to customize it do new things like Electronic Forms and CAD Integration. Consulting services should create a good revenue stream for OpenText, especially since the product is so new.
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