Lecere Corporation (LCRE)

[Tenacious]

**** Another Technology Lesson from Black Eye ****

So in the world of IT, there are some new buzz words that get thrown around recently...it's causing a paradigm shift that's causing business owners to take pause.

Lecere is taking advantage of this emerging trend.

When the computer revolution started, people had to build and host their own hardware, install their own software, connect all of the wiring...and support all of this. Anywhere were they want that software to work, they had to build all of this "stuff".

As all of this "stuff" grew out of control, IT couldn't manage it all. There were way too many servers. Then came virtualization. It allows complete platforms to run in memory in parallel with other systems. Now, instead of having 10 physical servers, they could consolidate it on fewer hardware resources.

During this time, the Internet phase was upon us. Suddenly, "everything is connected". I'm sure everyone can recall a time when you had to use a slow modem to "dial up" to AOL, Prodigy, or dare I show my age and say "CompuServ?" While the World Wide Web was not new, it was exposed to more people. IT started to experiment with how we can move from these fat, bloated computer programs in a way that can be easily accessible. Web applications were the ticket.

Over time, people became more confident in their ability to make access to information, applications and data ubiquitous. With virtualization and web based computing very mature...people are now offering two basic concepts:

IaaS: Infrastructure as A Service This is the ability for a service provider to provide you with "On Demand" capability for you to create and have them host a server on their hardware. Think "Rack Space" except now servers can be built automatically...of course using virtual technologies to economize.

Have you guys looked at Amazon EC2? or Microsoft Azure? They are popular examples in this space.

SaaS: Software as a Service. Think of salesforce.com or the many other services you use every day on the Internet that provides value. Many companies are now thinking about using IaaS and SaaS to de-couple internal systems and placing them on the Internet. Providers are now finding a way to simply charge you for an application, instead of you buying a CD from the store and installing it on your computer.

Example: Microsoft Office...very large program...Windows based. You install it on your computer. That's the "legacy" way in which applications are handled. Google Apps however provides a way for you to do Office type applications using software that works in a browser. No install required.

Of course, there are trade offs in performance for accessibility...but now that people have iPods, BlackBerries, Droid phones, etc. it's clear that people want their apps and data NOW!

IaaS and SaaS are the vehicle that people will do it today. They do this on what is called Cloud Computing--think of it as a space where all of your applications and data is accessible. It obviously involves global connectivity and access, but in a way that's secure for the running application. It's not a trivial configuration but one that must be mastered as applications bleed out from corporate boundaries into the Net.

Lecere is adopting this new model in a new frontier, and we are a part of it. The application concepts that Lecere is developing is not new...it's HOW they are aproaching it that will help reap benefits for its customers and investors.

Glad you are here with us!