Message-ID: <16495816.1075845419066.JavaMail.evans@thyme> Date: Thu, 31 May 2001 06:38:29 -0700 (PDT) From: greg.piper@enron.com To: a..bibi@enron.com, andy.zipper@enron.com, rex.shelby@enron.com, jay.webb@enron.com Subject: FW: TibCo Follow up Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Piper, Greg X-To: Bibi, Philippe A. , Zipper, Andy , Shelby, Rex , Webb, Jay X-cc: X-bcc: X-Folder: \Zipper, Andy\Zipper, Andy\Deleted Items X-Origin: ZIPPER-A X-FileName: Zipper, Andy.pst FYI Read this and let's get together maybe Friday afternoon to discuss. I am inclined to tell them no thanks for nowand chase some bigger fish. GP -----Original Message----- From: =09"Murray Rode" @ENRON [mailto:IMCEANOTES-+22Murra= y+20Rode+22+20+3Cmurray+40tibco+2Ecom+3E+40ENRON@ENRON.com]=20 Sent:=09Wednesday, May 30, 2001 1:16 PM To:=09Piper, Greg Cc:=09Raj Mashruwala Subject:=09Follow up Greg, =20 Thanks again for our discussion of last week. As we discussed, TIBCO rema= ins very interested in collaborating with Enron on the commercialization o= f the Enron Online software. We agree that a significant part of the chal= lenge with commercializing a software asset like Enron Online is to get it= "out of the starting blocks;" that is, to get the first few customer sale= s that set a full-scale market opportunity in motion. =20 =20 We would like to work with Enron to overcome the "starting blocks" challe= nge by acting as the sales and marketing agent for the software. Enron wo= uld retain all IP, but grant the right to resell the software to TIBCO. A= s a reseller, TIBCO would share in the revenue from the sale of the softwa= re. For reselling, we would typically receive up to 45% of the sale, depe= nding upon the precise nature of TIBCO's responsibilites for the marketing= and selling activities. Similar to our discussions to date, Enron involv= ement in the sales process would remain critical. The involvement of an S= I like Accenture would also continue to be important, but TIBCO would act = as the primary sales agent and apply its marketing capabilities and sales = force to selling the Enron software. Again, we would be passing the Enron= software through our sales channels without owning any of the IP. Based = on 6 months to 1 year of activity we could then revisit whether or not Enr= on is interested in selling the IP to TIBCO. =20 In addition, though, we also believe there is a bigger opportunity for TIB= CO and Enron to collaborate that would yield greater benefitsfor both part= ies. That is, Enron could take an equity stake in TIBCO as part of a larg= er agreement for TIBCO to generally act as the partner for commercializati= on of Enron software assets. We assume that Enron has multiple software a= ssets it would consider commercializing and a broader agreement with TIBCO= would enable Enron to establish a process for software commercialization = that could be repeated for multiple assets. The nature of the agreement b= etween Enron and TIBCO would be broader than just resale, in that TIBCO wo= uld assume the responsibility for all aspects of turning the asset into a = packaged software product and developing the related marketing programs, i= n addition to selling the products. Enron would still retain the IP to th= e software assets, however. Also, as a TIBCO investor, Enron would see va= lue not only in the revenue from software sold but also in the appreciatio= n of TIBCO stock, and all this value would accrue without Enron giving up = any IP. =20 =20 Obviously, this approach yields value over time from a software asset rath= er than up front, but it offers five key benefits. First, it provides a r= epeatable process for commercialization of Enron software assets--not just= Enron Online; second, it overcomes the "starting blocks" problem while al= lowing Enron to retain its IP and still take advantage of TIBCO's software= commercialization processes and expertise; third, it allows Enron to rece= ive revenue from both software sales and TIBCO stock appreciation; and, fi= fth, it creates a larger software commercialization framework that should = have value in and of itself. =20 We hope that we can find a way to work with Enron on its software commerci= alization efforts, and we'd like to continue to explore the ideas here, in= addition to any variations you may see as alternatives. =20 Thanks, =20 =20 Murray=20 =20 =20 =20 TIBCO Software Inc.