The OnTrac contract would not get awarded to another company....

The OnTrac contract would not get awarded to another company. Those who have stated as much on these posts that have caused this discussion don't really understand the Telematics business. It would be GM throwing away money and years of investment and having to start from scratch into a matured business model. The BCR for a new system to replicate what CXZ is providing wouldn't even stack up due to a short product lifespan.

The threat to the OnTrac contract is the system itself and how it fits into future business models, and how well CXZ is placed when the shelf-life of OnTrac is over and the is a software is due to be superseeded. The need for replacement will likely come from an expansion of the GM Telematics business model to include additional functionalities and market segments, as well as the core of the system becoming outdated with technological advancements.

The future replacement of the software would most likely be a gross expansion of functionality and likely broaden the scope of the software outside just the dealership market and even beyond the vehicle tracking segment of the market. This is where CXZ needs to be positioned.

The software (and the telematics software market as a whole) has a few years before the next major phase of the telematics revolution kicks off. The technology is well refined in cars, but its the connection with the systems of the outside world that it needs to integrate with, and those outside systems need to catch up. When those systems do catch up, data (and analytics) will be king and companies who cant handle data will be dead in the water, so its promising to hear CXZ are acknowledging that.

CXZ will get a contract extension for OnTrac, unless they do something ridiculously stupid. The question is whether CXZ can adequately place itself for future works once OnTrac reaches its shelf life or GM change its telematics business model.