Questionnaire results

[Edis, Robert]

I don't think you can compare the pricing of PowerHouse to Borland or
Microsoft.  For a start neither of those offer the level of support that
comes with Cognos tools.  Cognos could of course offer two levels of pricing
- one with support and one without (charging $200 bucks a call like
Micro$oft does).

*But* Micro$oft doesn't make any money on its development tools and doesn't
have to.  It's financial cream is from Windows and Office (~90% of their
respective markets).  If Cognos priced PH like VB or C# it would disappear
within a couple of years from the market because it would be just a money
drain to Cognos.  From my understanding Cognos makes virtually nothing on
selling the ADT products but derives most of the revenue from ongoing
license support.  R&D would be drastically cut.

Cognos (with our support perhaps) must develop a new model for developing,
promoting and selling the ADT tools.  It can't be the over priced model like
Oracle; it can't be the *cheap* costly model like Microsoft; and it can't be
open source (or can it?).  So what's left?  Let's see some imaginative ideas
folks.

Facts:
1. Cognos ADT is a great development environment that we all want to see
continue
2. Cognos doesn't want to promote its ADT products because BI is where it's
at, especially with share holders (who wants to invest in another
Borland/Inprise?)
3. The current pricing model discourages potential customers
4. R&D must be maintained to keep the tools relevant
5. Cognos won't spin-off ADT as a separate entity as existing licenses are a
good (low cost) revenue stream.
6. Cognos won't go open source through fear of losing control on R&D. (As
well as intellectual property issues.)
7. Cognos is a "bottom line" business.  I.e. as a publicly traded company if
it doesn't make business decisions that are popular with investors it fears
a drop in the value of its stock, which of course means certain people high
up in Cognos will be less wealthy.  It can't make *risky* decisions like
Corel did with Linux.

So what do we/Cognos do?

Blue


-----Original Message-----
From: Dennis Hassell [mailto:dennis@dhassell.com]
Sent: Friday, May 09, 2003 1:43 PM
To: 'Jones Allen'; powerh-l@lists.swau.edu
Cc: stewm@canada.com
Subject: RE: Questionnaire results


Thanks for the reference. My perusal of the financials shows that the
ADT revenue has decreased from 58Mil FY2000 to 38Mil FY2002, and the
comments later said that the trend was expected to continue. As a
percentage of the Cognos revenue, It has decreased from 15% to 9.9% to
7.7%, 2000 thru 2002. I didn't see any break out of the bottom line
contribution. 

To that I say "Of course!" If you don't advertise and if you don't
mention that there is such a thing as ADT (see the intro paragraph to
the financials - BI is highlighted and well promoted for almost a page,
but nary a word about ADT.

Bob asked me about where to advertise: PHWeb and Axiant could go
mainstream in pubs targeted at web developers and their managers - How
about 8 hour development cycles instead of 8 days? How about platform
neutral apps? How about a business model more in line with the pricing
(and volume) of Borland and Microsoft, instead of targeting only the
enterprise level of buyers. ADT will get into businesses (and schools)
if it can get below the financial radar ($500-900) so a department can
buy it with it's discretionary funds, instead of a multi-$$$$
CIO/VP/9-month purchasing cycle.

Can Cognos handle 50,000++ small customers? I think the corporate
mindset leans toward enterprise and multi-$$$$, but as Microsoft has
proven, a few million small customers can also work out pretty well.

I think the question is not about where or how to advertise and promote
- we all have seen very good BI ads, so we know Cognos can write and
target good ads. The question is: Is there a corporate will to increase
ADT business, or have the execs written it off as "legacy"? With the
neglect of the ADT market over the last years, it will take some
catch-up investment and time to see any meaningful results. The ROI is
there, but will there be the patience for it to happen?

Bob, any comments?

Dennis Hassell
Dennis Hassell and Associates
(941) 746-4919
(941) 224-3981 - cell

After the final No, there comes a Yes, and on that Yes the future of the
world depends. Wallace Stevens.


-----Original Message-----
From: powerh-l-admin@cube.swau.edu [mailto:powerh-l-admin@cube.swau.edu]
On Behalf Of Jones Allen
Sent: Thursday, May 08, 2003 7:56 PM
To: 'stewm@canada.com'; powerh-l@lists.swau.edu
Subject: RE: Questionnaire results


I found the relevant information at
www.cognos.com/company/investor/ar/index.html where there is a
downloadable copy of the 2002 annual report. You have to click on "View
the Cognos Annual Report 2002", then click on the downloads tab at the
top of the javascript window. Select the "Complete Annual Report (1,217
Kb)" It's in PDF format, but if you followed along this far, use the
Adobe reader to search for "application development tool" and
"powerhouse". There are several references for each.

-----Original Message-----
From: stewm@canada.com [mailto:stewm@canada.com]
Sent: May 8, 2003 4:29 PM
To: powerh-l@lists.swau.edu
Subject: Questionnaire results



Darren, might be better to direct your question at
Cognos investor relations.  I don't know if any of
those types are on this listserv.

Mark

That data is about 5 years old. Something more current
would be nice. 
 Like, last quarter, what did the BI tools bring in,
and what did the 
ADT tools bring in?  And my favorite for this
discussion, advertising, 
what were the two budgets? Should I 'assume' zero for
ADT, as I've never 
noticed any ads for it.

Darren

Consultants Club Corp.
Quote for the Day: Live by the sword, die by the sword.
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