Ann: Class - 31 December 2018 Update, page-25

I think the main challenge for CL1 is the emergence of price based competition

Industry feedback is that CL1 is the best product in the market. However growth has dried up.

The current market share leader is BGL desktop. They price well under CL1 (i think $150 vs CL1 ballpark $250 pa). The big change has been that BGL is now "giving away" a cloud version of its product for free to all paying BGL desktop customers. This is reducing the "contestable market" opportunity for CL1 for cloud based solutions. 

I see the risk is that given the smaller addressable market, CL1 will (and reportedly is) doing deals on price. And it hasn't been working.

There must be a chance for a takeout of CL1 becuase its a great product and the revenue they have is highly recurring. However the business now appears to be ex growth and there must be a chance that existing customers ask for discounts if they hear CL1 are dropping price to win share