Ann: Hyro Secures Significant Idaptive Contract , page-3

re: Ann: Hyro Secures Significant Idaptive Co... tc - agreed, nice news.

For those short on reading time, I think chris's concerns about Idaptive arise from late last years comments, where it was suggested they would sell some rights to the tech?

But I believe that, as HYRO have stated / clarified - HYRO have not distanced themselves from Idaptive as such - just cut the business into 2 distinct divisions, running together under the one HYRO banner?

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Quote from HYRO clarification statement in regards to Idaptive from 22nd Sep 2011 as follows...

"The board can confirm that at the date this article was published there were no negotiations or agreements in place relating to the sale of the Idaptive business. The separation of the Idaptive software business has allowed it to expand its sales channel for its IDAM product suite which was previously only sold via Hyro.

Furthermore the board is not aware of any other matters that would be required to be disclosed under the ASX listing rules with regards to the Idaptive software business."

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Even the article in question stated...

"focused its product development efforts in recent years on identity and access management and reduced R&D efforts in less commercially compelling areas.....

During its restructure, the company made a $10 million bet on its Idaptive software, an investment Votsaris said was starting to pay off.....

"Like any product development in software, it takes years to earn a dividend. Now we are in that stage,” he said.
Votsaris said the Idaptive product competed on a global level with solutions from IBM, CA and Oracle, winning “sizeable contracts” with enterprise customers such as Air New Zealand and Victoria’s Department of Education.....

The latter deal saw the department drop Oracle’s Identity Access Management Module for Idaptive, despite using a $60
million Oracle platform for its 1.5 million subscribers.....

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The divisions were all described back in May 2011 - the CEO address - as to how they saw the 2 entities existing together.

In the August 2011 Half Yearly, it was also stated...

"Hyro has continued to invest in the commercialization of the Idaptive (Identity & Access Management) product suite. This move enables Hyro to broaden its go to market strategy for the product to include the system integrator channel. A General Manager has been appointed to drive the future direction of the product suite, he has the experience and a proven track record to execute Hyro’s strategy for the product"

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Today seems to confirm they are still pushing along with efforts to sell the product... perhaps hard to do if your customer knows you are not going to be supporting the product in the very near future?

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If any reflection on HYRO/IDAPTIVE value as perceived by the customer base, the now obsolete Oracle system was quoted by HYRO as costing $60 million for 1.5 million users ($60 per user).

Today's announcement hints at the new HYRO system having some 1.0 million users at a cost of $1.5 million ($1.5 per user). No doubt there are other integration costs for the customer - however it does seem to leave quite some room for "savings per user" over the Oracle type systems?

Just having a bit of a think out loud here! - so please set me straight if I am way of track...!

In any case - it seems some sizable network users are jumping across to HYRO's systems as the opportunity arises - while ever the HYRO system has the required functions and can match the competitions product.

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Also liked the very specific wording today - "another significant education environment".

Not sure what they are getting at - but perhaps they are branching out into the Uni / TAFE system?

Any thoughts?

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Once again... time will let us see this a little clearer!

bsh