Open Text Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Open Text

OTEX 28.26

-2.6%

Jun 13 9:30 AM EDT

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: paul tuok who wrote (59)	12/6/1996 7:09:00 PM
From: Tyler Lawton	of 1195

I think they negotiate each contract individually. It is usually based on the number of users of the software, what they call "seats". So they negotiate a per seat agreement, say $500 per seat for 1000 seats. What the average seat cost is I don't know. I look first at the number of seats if they disclose it as in: "Livelink will be initially used by 200 Conoco employees on a HP-UX computing platform." That's not going to generate much revenue up front. But, if the company likes what they see, that can grow into at site license, which in Conoco's case is 16,000 seats or employees. That is huge dollars. That is what you look at next, the potential seats for a new customer. Since this technology is so new, you aren't going to get a lot of site licenses at first. What you get are pilot programs with a few hundred people. If the program meets expectations, you go for the site license and the big dollars. This is why some of these initial announcements don't move the stock price.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next