InvestorsHub Logo

rwk

Followers 11
Posts 1500
Boards Moderated 0
Alias Born 08/06/2003

rwk

Re: aleajactaest post# 216311

Wednesday, 10/12/2011 1:13:10 PM

Wednesday, October 12, 2011 1:13:10 PM

Post# of 249541
aleajactaest, I don't think

there are any significant economies of scale in deploying 6 mm seats. While there may be hefty absolute profit numbers, that isn't because expenses decrease. So while Wave may offer a modest seat discount, it's only because revenues are large. I'm going to ignore "marketing" costs as they are de minimus once the number of deployed seats exceeds 100,000.

I'm unsure of what you mean by multi-seat users. I think you mean companies where a specific individual will have multiple devices that require seats. If so, I disagree that there are any inherehent savings that can be rebated to the customer. Consider if a tank commander has a embedded tank pc, a laptop and a mobile phone that each have seats. The tank commander is likely to have all three devices operating independently and the seats will therefore have to act independently. I don't see why there are any naturally occuring reduced costs. Costs could in fact go up if the Army wanted to include some dependency conditions. Such as, if the commander's phone is being used in Ohio, then his tank pc in Missouri shouldn't be operable by him.

Keep in mind, the pc in the tank in Missouri should still be operable, but by someone other than the absent commander. Once again, the trusted item is the piece of hardware, not the user.
Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.