Summary of PDF of investor presentation given earlier today. Their slides are rather cryptic, and depend on being present to understand the points being made, but I’ll try my best.
COBOL – innovation is likely to prolong the life of their prduct by decades, and includes integration with industry standard IDEs like Visual Studio and Eclipse. COBOL is often considered a dead language, but it runs 85% of the world business applications. On mainframes, business is worth $1.5B+ (captured by IBM, Bull, Unisys, Dec, etc), and “off mainframe” (i.e. PC) and distributed, MCRO has a market share of about $210m out of $250m. Visual COBOL can take an app off the mainframe. It can integrate quickly with C#. It is easy to deploy onto the web
Mainframe Solutions – they intend to expand offering to address wider spread of enterprise needs
Borland– strong brand, but poor understanding of current “value propositions”. MCRO want to revive it, re-position it in the market, and re-establish bond with development community.
Marketing efforts. MCRO want to support their growth and shorten the sales cycles.
MCRO estimates that the drivers behind customer desires to modernise their mainframe apps are:
- reduce licensing costs (48%)
- increase reliability/speed (44%)
- support future growth (44%)