Well articulated H. That spreadsheet is mighty optimistic. By comparison, CVT estimates that to generate $10mln p.a revenue for their product they need 6-8 active telco customers and 250,000 seats (refer CVT Investor roadshow presentation 6th Oct).
I hope IWG can get some traction but I fear that the bigger well resourced global players are going to win here (no one got fired for hiring IBM!). If you go onto the Telstra Marketplace web page you will see that the iWebgate Workspace Suite is one of a number of security offerings. Now admittedly all of the offerings are not directly comparable, but when i see products offered by big brands like McAfee and Symantec at a fraction of the price of the iWebgate product i start to wonder how they are going to get the sales growth, regardless of how good the product is.
In relation to today's announcement, i note a couple of things. 1. Edward "Eddie" Sugar's bio seems to be more focused on resources and renewable projects and not technology companies. He has had some experience in Australia and i guess that's how the iWebgate crew connected with him. 2. Edward's firm seems to be more focused on connecting with the investor market rather than the potential commercial channels to market ...........sales revenue!. Given that IWG just finished a cap raising it seems odd to be coming out now with an announcement like this. Q. how are the US sales going ? Q. What was the result of the various tenders in the US ? Q. How many products have been sold on the Telstra Marketplace ? Why cant the company tell us that ? At least CVT is prepared to say how many seats they have on board (1,976 at Q1). Good luck to holders and potential buyers. As always do your own research or get some independent advice.
IWG Price at posting:
17.0¢ Sentiment: Sell Disclosure: Not Held
