Azure Healthcare Revisited, page-5

Hi,

It is difficult to measure the Tacera revenues directly from the provided financial information and there is a cross over of product sets between Tacera and Medicom. For example, if a messaging solution that works with both Tacera and Medicom is sold, where does the revenue get attributed towards? For this reason, it is easier to look at total revenues - the more interesting split would be wholesale versus retail sales and nursecall vs non-nursecall sales.

My prior business supplied the middleware component to thousands of sites and we dealt with all the nursecall companies. Tacera Pulse competes against solution set, but required a substantial investment to develop the platform - which I assisted in writing the specifications for and it was great to see the solution developed earlier in the year at HIMSS. The platform looks "heads and shoulders" above Responder V and Ascom's Unite platform - the two leading competitors. Rauland and Ascom have been distracted over recent months and not kept up with the rate of change in the segment (Rauland was distracted with a major divestment and one would think that when you are preparing a business for sale, you tend to reduce expenditure on areas that provide a long term return - such as R&D!).

I have a very good idea on the competitive landscape, but to do the comparison justice, it would take several pages of posts. At a very high level, there are a multitude of integrations to be implemented in a hospital, from Real Time Location Systems, security, fire, building management through to clinical systems such as Patient Admission Systems, IV Pumps, Patient Monitors etc as well as integrations in wireless telephony, paging and Smartphones. All this needs to be wrapped up in cohesive platform that acts as the orchestrator of the various systems to direct the alerts to the appropriate.

Traditionally, nursecall vendors have used third party software solutions to achieve this - adding substantial costs and limitations to the system. With Tacera Pulse this is effectively removed, lowering costs (making the offering more competitive and thereby increasing revenues and profits).

Hope the above helps.