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To: konabound who wrote (19961)	3/13/2000
From: Sommers	Respond to of 54805

RE: ELON competition Thanks Kona for clarifying. I should have said, many of ELON's competitors' architectures are closed. <<It is not a "chip based" protocol like LonWorks, it is a software-based protocol.>> Thanks for pointing that out as well. The Neuron Chip is a key proprietary component used in ELON's customers' control networks. So while the architecture remains open, ELON still receives license income and royalty payments on some aspects of its proprietary architecture. Sounds like the best of both worlds. My point is ELON's open architecture strategy should not only fuel the growth of LonWorks, but further position it as a compelling industry standard. BTW, swig: I was referring to pg. 52 of TFM.

To: konabound who wrote (19961)	3/13/2000 4:36:00 AM
From: Sommers	Read Replies (1) \| Respond to of 54805

RE: ELON's competition ELON has no competition. I mean, no competitors with products offering MORE compelling network operating systems and components, based on FARP: flexibility, adaptability, reliability and price. ELON faces competitors afraid of change. Afraid of giving up their free ride, hanging on to their closed or proprietary systems for dear life. Here I refer to the French trade association BatiBus International. This French group has a captive market servicing and replacing industrial automation equipment. It's a gravy train. Other closed automation associations/vendors include: The European Installation Bus Association (Germany), the CEBus Industry Council and Adtranz AB. But cracks are appearing. As Kona reports, Siemens acquired Landis and Staefa, who use LonWorks in their automation networks. Clearly, Siemens is shifting away from closed/proprietary systems in favor of ELON. Old products are being replaced with open control networks incorporating ELON's technology. Competitive Strengths: ELON's transceivers not only send data over un-powered telephone lines, but AC and DC lines of ANY voltage. As spiral3 posted earlier, ELON is the ONLY company to have achieved this capability. ELON's system is a flat architecture, not hierarchical. This lowers costs and lends the system to greater flexibility/adaptability. Hierarchical systems are based on costly, proprietary controllers. It was no surprise when CSCO certified LonWorks. I said Cisco. ELON's LonWorks' networks offer an even greater advantage by allowing software from different hosts to interoperate. This further increases a system's productivity and lowers overall costs. For example, users can monitor the network from a variety of interfaces and installers/repair technicians can access all services from any point in the network. The PC based tool, LonMaker for Windows, is a software package for designing, installing and maintaining networks. This allows Microsoft Windows applications to share information. Revenue: ELON's primary revenue generators are its control and connectivity products: transceivers, routers and control modules (a control module incorporates a Neuron Chip, transceiver and flash memory all in one). 100cfm reports: Trane and Carrier abandon their proprietary systems in favor of ELON (Trane's new system, Summit, is LonWorks compatible). ELON's Neuron Chip is manufactured and distributed by Motorola, Toshiba and Cypress. Interestingly, Motorola owns approximately 8% of Echelon. 35% of ELON is owned by insiders. ELON's revenues increased 45%, for the third quarter ending September '99. Winds are moderate, but small crafts are to be advised. Signs are reminiscent of Qualcomm (he,he,he, I said Q) a la February/March '99. Yet, still too early for a true blue gorilla gamer. I await LindyBill's post: "I'm 100% ELON!" PM any specific questions and I'll present them to my local Echelon corporate rep. and/or the local distributor: Smartech Control Systems (as appropriate). The answers will be posted public.