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Strategies & Market Trends : Stock Watcher's Thread / Pix of the Week (POW) -- Ignore unavailable to you. Want to Upgrade?

To: Stock Watcher who wrote (14563)	9/8/1999 12:49:00 PM
From: davedb	Read Replies (1) \| Respond to of 52051

SW, I made a couple pennies on ADBL, but I can't put it any better about the WAVX and ADBL relationship then this guy. tp://www.siliconinvestor.com/readmsg.aspx?msgid=11169664 Thanks Davedb

To: Stock Watcher who wrote (14563)	9/8/1999 1:39:00 PM
From: RCJIII	Read Replies (1) \| Respond to of 52051

SW, this is last month's Chairman's letter from MIGR- GOOD MIGRATIONS August MigraTEC, Inc. 1999 An Open Letter From the President By Curtis Overstreet, President and CEO Seldom a day goes by that I don't receive an investment newsletter claiming to have inside information on "The Next Microsoft". Although I have been in the technology business for over thirty years, I do not have any idea which company might become the next Microsoft; however, I do know what must be present for a small software company to have the opportunity to become very, very successful. Market - In its purest sense a market is defined as a business need looking for a solution. In today's marketplace, the number one business need that corporate America must address is "How to do business on the Internet". In order to do business on the Internet, major corporations must technically enhance their Information Technology systems. One of the major enhancements that will take place over the next 24-36 months will be the upgrading of software applications that are currently running on 32 bit machines, to run on the new 64-bit machines. The new 64-bit machines, among other things, will allow the access and processing of larger databases more quickly. Therefore, it is all but a given that every major software vendor and major corporation will upgrade their software to be 64-bit compliant. As these companies try to adapt to this new technology, they are faced with major resource problems. A good software engineer can upgrade an application from 32 to 64-bit at a rate of 2,000 LOC (lines of code) per day. There are currently over 200 billion LOC that must be upgraded. Studies show that the cost of manually migrating is approximately 40½ per LOC. Therefore, corporate America is faced with an $80 billion business need, looking for a solution. MigraTEC, in conjunction with Sun Microsystems, has developed a 32 to 64-bit Migration Workbench. This workbench allows for the upgrading of 32-bit applications at a rate of over 30,000 to 50,000 LOC per day. Market leaders vested in finding a solution Once a market opportunity has been defined, a small software company must then make the decision as to the best way to capitalize on the opportunity. MigraTEC's approach was to determine which major companies would receive the greatest benefit as a result of the business need being solved. In the case of 32-64, there are three companies that have a vested interest in corporate America moving to 64-bit technology. These companies are the major manufacturers of 64-bit technology; Compaq, Intel and Sun Microsystems. Historically, a hardware manufacturer will leave the assimilation of new technology to their customers. When corporate America moved from 16-bit to 32-bit, they received little or no assistance from the manufacturers. As a result, the 16 to 32-bit upgrade took over five years to complete. These manufacturers know that while 32-64 will be even more difficult to accomplish, their customers will not tolerate the time and expense needed to accomplish this manually. Consequently, Intel, Sun and Digital have a tremendous desire to see an automated 32 to 64-bit solution available to their customers. Intel and Compaq, along with several of their larger customers, have created a $250 million Venture Fund focused exclusively on helping companies develop technology for their new 64-bit chip. MigraTEC has successfully demonstrated its 32 to 64-bit Migration technology to Sun Microsystems and is working on contracting for the first project. Over the course of the next 4 to 6 weeks, we will complete the validation of our technology at Intel and Compaq. We expect this to go well and it is possible we will receive some funding from the Venture Fund. Market Opportunities for Other Major Corps In that manufacturers do not have delivery capability for a software solution, the third component to our success is to find those delivery organizations that can capitalize on the 32 to 64-bit initiative. In our case, these would be companies such as EDS and IBM Global Services. MigraTEC has had extensive conversations with EDS and they see 32-64 as a great market opportunity. MigraTEC has had initial conversations with IBM Global Services and they concur that this is indeed a huge market opportunity. Over the course of the next 60 to 90 days, MigraTEC will bring together the manufacturing companies and the delivery companies to develop a 32-64 upgrade offering on a world-wide basis. In summary, MigraTEC has developed an automated solution for an estimated $80 billion market; the major manufacturers in this market are highly motivated to have our solution available to their customers; and the major services providers in our industry see this as a tremendous business opportunity. MigraTEC will keep you posted on the progress of this opportunity via our weekly e-mail updates. Send your e-mail address to Roberta@MigraTEC.com so that you can be included on the list to receive these updates.