Hi,

I have been listening lately.  My one HP3000 client hired some CPA's to do
an analysis of what to do with 5 year TOC and various risks associated
with it.  They were looking at the following scenarios:

1.  Homestead
2.  Migrate code to Psuedo MPE
3.  Rewrite from Scratch
4.  Rewrite after Migrate
5.  Package Solution with changes

Homesteading was the least risky and the least costly while the Package
solution was the most risky and the most costly.

They would choose homesteading if they felt that Homesteading was a
longterm solution.  At the moment they are leaning towards Migrate to a
Psuedo MPE environment but probably not until after 2006.

When you look to the future, what makes sense for OPENMPE?  It needs to
make sense on how to build a viable organization to support members such
as my client.  My client is used to paying a lot of dollars for support.
They saved money by not having expensive support staff.

OPENMPE needs the following:

1.  OPENMPE Emulator
2.  OPENMPE System Support Hotline
3.  OPENMPE Hardware Support, integration and testing
4.  OPENMPE Software Support

OPENMPE may contract out each of these options, but be the glue that holds
them together.  OPENMPE collects the bills and distributes the money
accordingly.  OPENMPE needs at least 4 RFP's.

From the RFP's, then OPENMPE can build a business case for clients like
mine.  For the customers like mine, the cost and the company behind it is
very important.

Prior to the new emulator, OPENMPE could do items 2,3,4 in order to
support OPENMPE customers.  If OPENMPE had a viable support services
business that will continue past 2006, on current hardware and software,
then financing the Emulator would be easier not neccessarily easy.

Without this business case, I think that financing the emulator would be
very difficult.  To finance the emulator project, it may take some upfront
money and some royalty income.  I suggest that OPENMPE raise the upfront
money by preselling emulator licenses.

Let's say that the emulator costs $2M to write.  OPENMPE provides $1M for
project financing and agrees to a $1K royalty.  OPENMPE will sell the
emulator license for $2K in the future. The people who finance the
emulator would get the emulator license for free for their internal use.

How many people do you feel will commit to homesteading to finance this
environment?  The first place to look would be vendors whose future
revenue streams will be enhanced with the continuation of OPENMPE.  The
second place to look will be the long term support suppliers for software,
hardware and system support.  The third place to look are large users
contemplating Homesteading.  The fourth place to look is for consultants
who are still working in the MPE arena.  The last place to look is for
small customers.  Small customers are the least likely to enter into such
a venture.  I do not believe that you will get 100's of presold emulators.

To raise $1M it would take 50 @ 20K or 100 @10K.  For instance, for a
vendor like Adager, would $10K be a reasonable amount for the continuation
of their product line.  What other roles could Adager play in support,
etc.  I give this as only an example.


Terry Warns
Terry Warns & Associates