Wave Systems Corp. (fka WAVXQ)

[internet]

Hi Dig...re HP bundling deal. I don't agree that your view on a possible HP bundling deal.....although I can't exclude that [possibility. In my view....we will see a possible bundling deal. There are two different deals that we are talking about....one for the basic software...and the other for the trusted drive manager.

1) If enough HP clients want Wave's TPM software installed.....it will pressure HP to enter into some sort of bundling deal. Otherwise....it's going to get expensive for HPs clients. For example...if a HP client wanted Wave's TPM software installed...it will run them betrween 10-15 dollars/unit. Remember that Dell's costs are ~.90 cents. That is a significant difference for a potential client. IF...yes...I said IF...HP transitions to the Broadcom USH.....we will see a bundling deal along the lines of Dell .90/unit (or slightly higher) shortly thereafter....IMHO

2) As SEDs become more common.....the trusted drive manager from Wave will be asked for in larger numbers. This is especially true when one is talking about the Feds. Infact....I sincerely believe that once the feds MANDATE SEDs...we will see a bundling deal for the Trusted Drive manager.


Sincerely,

Jas