Wave Systems Corp. (fka WAVXQ)

[UncleverName]

barge:

http://www.unclever.com/wavx/DigitalID2002SKS.html

Q: It's not a very clean question yet, maybe you can sort of help me. You said something midway through the presentation that it starts with the devices, which will then sort of pull the service providers out. I'm just trying to figure out where you think the adoption first needs to happen since me as a consumer purchasing a device the benefit for me, either in enhanced services or in security, is only incremental. If someone steals my credit card now, I could change a quite easily. When is going to… does it happen with me or does it happen with the service providers, like where does the adoption happened? Where is the market getting driven? And who is building out the things that you say are necessary to make this so pervasive?

SKS: First off, I think that it happens somewhat in parallel. I think that, as I said at the beginning, I think that it requires some of the big players standing up and saying "this is going to happen." That puts a safety net on the investment that all of us make. Because if we build things eventually we'll catch the wave that they're creating. And that's probably the most important thing. Secondly, I think that in the computing industry, probably the biggest being made is that everybody is looking at this as an enterprise security problem, and it's not. Primarily, it's a consumer security issue, but if we solved consumer security every enterprise will use it. It's guaranteed. But if I create the ultimate device for the DoD and they may buy it and put it in every desktop of the DoD, is it going to help consumers? Most likely not. So, so much of this we've learned and forgotten. Right? To go back in time, was the PC adopted by enterprise or consumer first? It was adopted by the consumer first. And we took it to work, and we plugged it in at work and said, hey you know this works so much better than this minicomputer. I have the ability to put my spreadsheet on it and I can stop using my calculator, which was my enterprise provided calculating tool. So if you look at what are the things that we can do on a peer-to-peer basis, the consumer problem is so much harder to solve. Yet if we solve it, it becomes easy for enterprise to adopt. Enterprise has the wonderful benefit of an IT manager. Right, they can get up in the morning and they can decide we're going to deploy this type of security, they hand everybody a token, they change all the doors in the building, etc. The consumer on the other hand is kind of like, I just want this thing to work. You know, I want my wife to be able to edit the web page because my computer knows the password.