buffetguy, Wave is developing the software tools to enable the hardware infrastructure. I am in software so I can answer this easily. We create a version of software. We then send it to the "duplicator". The duplicator will take about 2 weeks (including shipping to and from) to give us spindles of software CDs with thousands, tens of thousands, of CDs. We can then ship them to the customers. We have lets say 60,000 customers globally. We then ship them software update CDs at the rate of 500-600 a day for three months. We do this because our support staff would be inundated with installation questions, etc. if we shipped them all at once.
In Wave's case, they don't have existing customers (or enough to speak of). They would therefore not have this model of support (yet). Additionally, they typically send out what Steven referred to as a "Gold Disc" which is used by Intel or Dell to copy software to a software suite CD, or duplicate, on their own, which would then, in-turn, be shipped in the box with the PC. If you ever bought a Dell or Gateway, etc, you will typically get a half-dozen CDs with it for backup and software bundles. Multiple vendor products would be stored on one Gateway CD. The costs for Gateway to do this are built into the pricing structure, so it costs Wave nothing. Whatever revenues Wave agreed to get for the CD seat shippped with the TPM computer, they will get.
Wave's costs will increase with an increase in customer base and R&D. That's about it. Wave will have to manage OEM accounts, and direct accounts. People have problems. Checks don't clear. Licenses need transferring. PCs crash or buildings get struck by lightning and fry hard drives (happens all the time). Wave will need staff to handle these pressures and these are all low-level administration/support jobs that are pretty easy to staff.
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