From: Clayton Weimer [clayton@wanderbook.com] Sent: Wednesday, November 20, 2002 11:37 AM To: Zolt Home; Zoltan Horvath Subject: biz model Zolt, this is a very long message, but it gives me a chance to record my overall status so here goes.... I can't go to COMDEX, because I'm too involved right now trying to get this ACER in Kelly's hands, I also have just ordered the Compaq, and hopefully it will arrive soon. All the tablet PCs, I've been able to play with. For RE I think its either the compaq or acer. On wide area wireless? Verizon is looking closer and closer to Ricochet. They have a $99 unlimited plan now. The coverage is much better than only 6 months ago (I even got it going in Carmel). I use a technology from www.propel.com which is part of the reason why it's getting close to Ricochet performance (I'd say halfway there which is saying a lot). Question, is this yet to the point where the download-at-night feature of Homeworks not as critical?)? When the machine is home or at the office, it will use the 802.11b network as a preference. If 802 (AKA WiFi) is not around, then it automatically dials into the Verizon network. Questions now, should I look into Sprint's and AT&T's new high speed offerings? I already don't like AT&T because they are making false claims on performance, but oh well, that's marketing. I guess in the long run it depends on which one provides the best reseller opportunities. Technology-wise, both Novatel and Sierra Wireless are used and have API's, though it seems Sierra is first out of the block and I also prefer Sierra's SDK. Software-wise. I have created an navigation and organization scheme that is pretty cool, penpointish, but of course not penpoint. The scheme is newish, may be patentably, I need to go over the ideas with you. Of course its heavily gesture oriented, but to an extreme! and has tabs to organize things. At the launch in San Francisco, the only real applause during demos was when some developer got up and showed a tool they have, allowing one to draw a checkmark gesture (or other predefined gesture buried in MS's HWX software) in a special area on the desktop which launches an application. So he draws a checkmark, it launches the app, and people applauded. I couldn't believe it! When there was something really novel shown (and there was not much), like the Snippet tool, dead silence. Oh well... I think, have always, tablets will continue to fail as the U/I sticks to WIMP user interfaces, its the navigation part that makes these things feel wrong. So, I think gestures to an extreme is not a bad idea except for the obvious: it goes against every user interface focus group study made in this area ;-) As far as reselling software, I address the biz model below. The user's point of view is 7 things they do: there is Web stuff, MLS stuff (listings, reports, street maps), Forms (eForms and transactions), Email, Notes and Documents, Addresses-Contacts, and Calendar-Scheduling. Forms-WinForms is freely license to all agents. So MS Office XP and Homeworks are the main add-ons that cost. Homeworks is not extremely popular becuase of cost, though its features are superior to anything else, most agents use other software, and recently the Homewroks people themselves have simply created a Web app that mimics the same features. Problems is , of course, it assumes a good Internet connect all the time. Only Homesworks has the offline database feature so far as I know. There are small runtime fees for the gesture engine and scripting engine I use. Then there is the case, which must be portfolios for Wb purposes. Compaq has two of them, Acer has none so I created one for it like I did with the Fujitsus. How do I airbrush a WB logo? Don't know yet. So you take the ingredients above, mix it all specially together, and you have a Wanderbook package. But what's the business model? What the fuck is a Wanderbook anyway? I have been going around and around and around on this. Nothing, when you try to deeply analyze the shit out of it makes any sense as an investor. But this comes close: Wanderbook is a packaged-service. The package-service is technical support with a pre-configured hardware/software bundle as part of that service. The customers are categories of mobile sales professionals with a huge personal need for IT (Information Technology) support. Real Estate professionals are target #1. They rarely have IT support for the environments where they are the most productive: away from the office. Here, Realtors are left on their own for technical support and know-how (or savvy spouse or friend). Yet, for most agents wanting to stay in the people-business, the trade-off of working with machines vs. people is unacceptable. So they mostly stick to the office when it comes to technology. They've tried Palms and laptops, but they gather dust (unofficial survey). However, the business is becoming more Internet reliant and the Internet consumer is becoming a larger part of the clientele. The need for "Internet Savvy-ness" among Realtors is now critical. The "Wanderbook" resolves this dilemma with a personal IT service, specializing in packaging and supporting a new class of mobile technology that can now meet the requirements. Like Other Rent a Computer firms (e.g. www.rentex.com ): 1) Rent computers to individuals, firms. 2) Maintenance and Technical Support provided. Unlike Other Rent a Computer firms: 1) Tablets/wireless only. 2) Packages only, specific configurations of software/hardware and peripherals. Revenue Model??? I need a lot of help here. First the major expenses are hardware and support. The goal here is to keep support cost contained by treating the package as a device/closed system, not a PC. We can't allow the user to change anything. What if they have a custom need? They pay. So extra services and support is a big part of the model. We can even create a menu of extra services (like Comp USA does). Recurring revenue is also a big part of the model. We must sign up users month or year deals. But this is not a lease, we own it, customer drives it, like Avis rents cars, but this is better to the customer because if Microsoft and its OEMs built cars surely everyone would not want to own one, but just let someone else own the headaches. There is a lot of complexity here. Configuring then renting needs to be an assembly line approach. What's the legal process of renting a machine with MS Office on it for example? Verizon? Homeworks? (who are paranoid about non-agents using the software). There may be new ground needed to brake here. Questions: do the rental computer firms make much? I doubt it but don't know. I know this, their charges seem outrageous. Attached is a rental firms quote to me on a basic laptop for $175 a week, and this one is one of the cheap ones. Doing a BOM on a Wanderbook, figuring that Wb could lease a tablet and MS Office for $90/Month (48 months) with maximum warranties, then also figure Verizon and other costs: why wouldn't $299 a month be profitable? Ok, depends on all the hidden costs not mentioned here. The reason why I say $299 a month is based on my extensive marketing research ;-), we could sign up 1000 agents tomorrow for this. $399, $499, or the $175 a week??? I don't know.... Now, back to the hardware. First another tangent: I really hope Kelly like's the Compaq, it really comes down to her likes and dislikes (she is my marketing litmus test). She loves the Acer. But only focusing on HP as the supplier (I believe everdream started this way) one set of hardware, one flavor as long as its black is the way to make this work. I suspect, the rental guys go crazy support the huge number of different machines and equipment they provide. The uniqueness here is that we rent one thing, nothing else. We sell services. So in the nutshell: Wanderbook is a package-service providing personal IT to mobile professionals having a critical need for a "Walking office". -----Original Message----- From: Ralph Tirro [mailto:ralph@rentex.com] Sent: Thursday, November 07, 2002 8:07 AM To: clay@wanderbook.com Subject: Rental quote from Rentex, Inc. Thank you for your online rental inquiry. Attached is the rental quote you requested. Please take a moment to look it over and see what you think. If you are interested or have any questions, concerns or would like to place an order for this, please do not hesitate to give me a call. Also, Rentex guarantees the lowest rental rates and if you happen to find a better one, we can beat that price by up to 10%. Thanks and have a good day!! Ralph ________________________________ Ralph Tirro Account Manager RENTEX INC. Computer And Audio-Visual Rentals 337 Summer St. Boston, MA 02210 * TF-(800)545-2313 x255 * L -(617)423-5567 x255 * F -(617)482-9415 ralph@rentex.com www.rentex.com <>