Ann: Sales update, page-55

I think you made up numbers to prove a point.

From double checking these names, some have used Odotech for years and its not clear now long an ongoing support service agreements were for. Many could be coming near an end where deals would need to be renewed. At this point EVS can name a price and potentially at a rate higher than the old support service agreements as in software they'd often be at lower effective annual rates when part of a upfront licences model. EVS can also force the hand of some by saying support is discontinued and that you'd need to covert over or go elsewhere. Its also worth noting that budgets are typically annual events and councils/counties/authorities have both CAPEX (bigger one off multi-year use buys) and OPEX (regular ongoing service buys) budgets. Odotech would have previously been mostly CAPEX item with current EVS being an OPEX item. There may be a psychological impact that could cause customers to avoid going to sub model if they feel the sunk cost of a CAPEX item still but in enough time their choice will be pay a sub (at a higher rate than prior ongoing support fees) or go elsewhere. You see this in any software company converting a user base from licence to subscription, the subscription fees are always higher than the prior service fees as they essentially to recoup revenue that would have otherwise come from an upfront licence fee i.e. the higher sub rate would effectively cover revenue lost but not making upfront licence/hardware fees.