Full stream ahead
01.11.04 Richard Beddard

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Keith Bigsby is calling me from Irvine, California to talk about Stream Theory Inc., the company which his company, Tadpole Technology, bought on 20 October. It is a significant event. A signal, says Bigsby, that Tadpole is turning a corner.

There is another reason I am keen to write about Tadpole. The company is a favourite among Interactive Investor users. It is the subject of our second most popular discussion board, and more Interactive share dealing customers own the stock than own Unilever, Rolls Royce or Cadbury.

Yet despite their loyalty, Tadpole has inspired and frustrated shareholders in equal measure. If this is a pivotal point in the companys history, it is not before time.

Streaming technology
Bigsby is in California to integrate Stream Theory and Endeavours, Tadpole's streaming division. Ultimately the two companies will merge but it is their most important products that will come together first.

Both enable software to be streamed or segmented so it can be sent to the user one piece at a time, on-demand. It is like streaming music over the Internet.

Bigsby, though, is keen to point out the technologies are distant cousins. Streaming music is easy, he says, because you know what is coming next. "If you listen to Beethovens Ninth Symphony you really want to listen to the second movement after you have listened to the first."

Software is quite different. "If you stream down Word are you going to be looking at spell check next? Or are you going to be formatting?"

Costs
But why stream, when you can download, or buy a CD? The answer, says Bigsby, depends on who you are.

For businesses, streaming drives down the cost of information technology. You will not get much out of low-margin hardware suppliers these days. Companies have outsourced the IT staff costs. What remains is software, "You only need to look at Microsofts cash position to know how much profitability they drive out of their business model."

Because software is installed once, then streamed to employees on demand, companies can save on installing, updating and patching software on individual computers.

Furthermore, and this is where his voice starts creaking with excitement, financial directors like Bigsby can see where the money is spent instead of paying for software sitting in a dusty cupboard. Licenses are pooled: "I am using it today; you could be using it tomorrow," says Bigsby.

Piracy
But one thing users will not find easy is piracy. It is difficult to do with only a bit of the program stored locally. "Our experience with Autodesk, which has been using the technology for two or three years, is that since then they have had no experiences of piracy."

That is one of a number of characteristics of streaming Bigsby expects to attract software vendors. Another is speed. It can take all night to download a game you might not even like, unless it is streamed.

And "Microsoft would be very happy if everyone migrated up to the latest version [of Windows] but the only time you go to XP is when you buy yourself a new PC." But, says Bigsby, with streaming, "You can always be renting the most up-to-date version."

Synergy
But why buy another streaming company? Stream Theory serves a different market, says Bigsby: "Weve seen there is great opportunity in the games market. We could either ignore it, invest ourselves (which would take time and money and we would probably be too late to market to make an impact). Or we could acquire."

"The other advantage that Stream Theory gave us," says Bigsby "Is their strength in Japan and the Asian markets because of the deal they designed with Softbank. They have a very strong presence in Asia. We have absolutely nothing in Asia."

Steig Westerberg, founder of Stream Theory, will join Tadpole's board as chief operating officer, streaming technologies Americas and Japan. He will lead sales there, leaving Bigsby with Europe and the UK.

Vision
The vision is to create an industry standard: "We need to be the only player in town", says Bigsby, by dint of superior technology and the oldest streaming patents.

You might think the competition would have something to say about that. Endeavours is pitched most often against Softricity and AppStream, with Stream Theory against Exent. Bigsby struggles to find a good word to say about any of them.

"As far as we are aware we have not lost a deal to the competition where we have come across them."

"The major competition we have is from the old technologies. So thats the bigger issue. We need to have the market beat a path to our door."

Companies, he says, are chastened by the excesses of dot.com era. Too much was spent on technology that sat on the shelf. But finance departments are back in charge now.

"They are looking harder at the technology. They are looking harder at the returns on investment before they invest. And when they invest they do not want to have huge up-front commitments which expose them to risk if, for whatever reason, the technology does not work".

Hence the Tadpole pricing model, usage based pricing: "If you do not use the technology... then you are not going to pay a lot of money for it. We are putting faith in our product. And as we are evangelising the on-demand message we are... eating our own dog food by pricing on that basis."



Part 2. Tadpoles path to profitability.

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The information

Part two

http://www.iii.co.uk/sharedealing/?type=editorial&editorial_type=&id=33307&archive=!1&section_id=32297

M

MCI link Virtual tour

http://global.mci.com/us/enterprise/managed/oas/oasload.html

M

ML
have you watched the link?
Certainly looks impressive and shows they are now out there marketing it.

Loks like the MCI & MS news along with the KB interview has sparked some buyers.

Yuff

Of course i watched it!!!

Thats why I posted it, it is so exciting. helps you
understand the magnitude of the potential here.

M

ML
Looks like we must have a large buyer out there, judging by the way the mm's have taken all those sells at 13+
Anyway it was enough to scare evo off the offer.

There it is mate, 400k buy @ 13.5p

M

ML
Nice to see some decent buys happening so soon after the MS & MCI news.
I see the terd on advfn is being its normal pain in the ass.

how can you tell Yuff? all his posts have been deleted..........LOL

hang on........WHICH terd ( sic ) ?

Superrod
The one who goes on about people posting caca and thinking he ie is really witty by calling ml monkeybrains, is he just very bitter that tad is still going or is he just thick?

RNS Number:9113E
Tadpole Technology PLC
05 November 2004


Tadpole Technology plc
5 November, 2004


Tadpole Technology plc
Board Appointment

Tadpole Technology plc announces the appointment of Dr. Mark Ketteman as an
executive director. Dr. Ketteman is the CEO of Tadpole's Cartesia division and
continues in this role reporting to Mr.David Lee, executive chairman of Tadpole
Technology plc.

Dr. Ketteman has over 20 years experience in the geospatial, mapping and CAD
markets. Appointed to manage Cartesia in 2000, he has been instrumental in
directing the growth of the business and its strategic focus on delivering
solutions based on ESRI technology.

Mr. David Lee, executive chairman of Tadpole Technology plc, comments: "We
welcome Mark Ketteman to the Board. Mark's appointment reflects the progress
already achieved by the Cartesia division and the opportunity seen for further
growth."

There are no items requiring disclosure under paragraphs (b) to (g) of Rule
6.F.2 and 16.4(a) of The Listing Rules.

Dr. Ketteman currently holds 16,661 ordinary shares of Tadpole Technology plc
representing 0.00004% of the issued ordinary share capital of the company.

ends


Enquiries

Hugh Paterson, Patcom Media - Tel 0207 987 4888

ML - re Ketteman - let's hope he buys some more shares. Even I own more!

I would agree. in fact i am surprised they even mentioned the fact. i suppose they had to, to comply with LSE regulations!

M

We must be barmy to invest in a company where the executive director has only two grands worth of shares.its time I looked for the exit door.

Palindromic!

TOK - Where's the palindrome?

16661 mega holding

at least hes got a few......maybe he thinks its enough to retire on....in which case i will see you all in st moritz on my yacht.

SHORT TERM COMMENTARY
The stock is taking a breather, although still in a strong bullish trend.

MEDIUM TERM COMMENTARY
Medium term price trend Tadpole Tech is still bullish this week. This market keeps a relative behavior lower -3.29 than FTSE 100 INDEX. Volatility has been decreasing during last month. Be alert to the proximity of resistance 13.5, and a possible retracement from this level.