PrismTechs Business Vision for Open Spirit

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PrismTechsBusiness VisionforOpen Spirit
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Background

• Highly successful SEG from 2 standpoints
• Technology proven successfully demonstrated
• Strong market interest established
• Vendor neutrality of Prism emerged as one of the
  key enablers to
• success
• Momentum has to be maintained
• address issues head-on
• Agree on a business model that maximises
  OpenSpirit opportunity
• for commercial success

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Issues

• What is the OpenSpirit product? -
• Vision for the product
• How is the vision for the product achieved?
• Business model
• In the short term how will the funding gap to V.2
  be addressed?
• Contracts still not agreed - inertia will be
  harmful to success of
• OpenSpirit
• What are the future roles of PrismTech, the
  Alliance POSC? -
• some market confusion

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What is OpenSpirit ?
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What is OpenSpirit ?

• It is a product
• It should extend beyond the current coverage of
  sub-surface
• intepretation into new data domains
• eg. Drilling, Production, Pre-Stack Seismic
  Cartography etc.
• It should be the standard implementation of
  these data frameworks,
• ie. The POSC standard
• It should be the Object Services layer which
  supports these
• frameworks (extensions to cover transactions,
  interaction model etc.)
• It is the link to popular databases (Vendor
  maintained)

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What is OpenSpirit (continued..)

• It has to be commercially driven
• We must transition OpenSpirit from a project
  funded model to a
• model which is self-supporting
• PrismTech sees its role as the fulcrum of the
  development
• support of the extended OpenSpirit (standard
  implementations)
• This does not preclude data framework extensions
  by third-
• party vendors, but those extensions should not be
  called
• OpenSpirit - devalues the product name

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Next Steps...

• Formulate and agree the Product Vision -
  Prioritise data domain extensions
• Formulate and agree a Product Plan
• The Product Plan will be the principle document
  that will drive the development forward. It will
  encompass
• Existing plans for OpenSpirit 1 2
• Plans for fast track extensions into other
  domains Object Services extension
• Commercialisation effort
• Support Plans
• The Product Plan should extend over the next 2
  years

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Next Steps

• Product Plan to be developed in conjunction with
  major
• vendors eg. CGG, Geoquest, PGS, Oracle and the
  alliance
• Product Plan will drive Business Plan to include
  Business Model,
• Funding, Marketing Operations
• Product Plan Business Plan to be complete for
  presentation
• to alliance by 01/99

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The Business Model

• There are two issues which during the OpenSpirit
  negotiations
• have constantly been problematic
• Security of supply with regard to Vendor
  Neutrality
• The Funding Model with regard to ongoing
  development
• The Business Plan must address these issues

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Security of Supply

• This is principally a vendor issue both vendor of
  the applications
• and Prism as vendor of OpenSpirit
• Vendors will not use OpenSpirit if the Company
  developing
• OpenSpirit can be purchased by a competitor
• As a commercial organisation whose principle aim
  is to create
• value in itself through its intellectual
  property, Prism must at
• some point in the future be able to realise that
  value
• Prism believes the current agreement is a
  temporary fix, as time
• goes on the problem gets bigger and it becomes
  more difficult to
• implement the current model

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The Funding Model

• The current Funding Model is inadequate in that
• OpenSpirit needs applications to interest the
  O.Us
• Vendor applications and database links should be
  included in the total picture
• The Funding Model should encompass the Product
  Plan (ie. Beyond V.1 V.2)
• Credits are self-defeating and we must
  tranisition to a standard commercial
  arrangement for the product
• The Product Plan will drive the Business Plan,
  the Business Plan will
• establish the funding requirement, to enable this
  transition
• Prism will develop the Business Plan in
  conjunction with CGG,
• Geoquest, PGS The Alliance
• The plan will require investment by all parties

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Possible Business Model

• Prism creates subsidiary Company which becomes
  the development
• and support group of OpenSpirit
• All intellectual property in OpenSpirit is
  transferred to this new
• Company. All new IP generated is owned by new
  Company
• New Company appoints PrismTech as the exclusive
  marketing arm
• for the new Companys products
• PrismTech offers minority stakes in new Company
  to major vendors
• eg. CGG, Geoquest and PGS

PrismTech Ltd
Exclusive Marketing Rights to OpenSpirit
OpenSpirit IP
New Company
Prism Equity Stake
Vendor Equity Stake
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Why the above Model?

• This puts OpenSpirit on a commercial footing
  because it is
• supported by the major vendors
• It offers the most appropriate way of continuing
  vendor neutrality
• of the OpenSpirit brand eg.
• If Prism is sold then shareholders get first
  right of refusal on Prism shares and vice-versa
• If Prism is sold then marketing arrangement with
  Prism could be terminated and awarded to another
  party
• Prism as the marketing arm guarantees VAR
  confidentiality on issues such as licence
  reporting etc.
• It ensures that investment in OpenSpirit is not
  cross-funding other Prism developments

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Implementing the New Model
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Future Roles of PrismTechThe Alliance POSC

• PrismTechs proposed role has been discussed
  previously
• The alliance role under the new arrangements
  would need to be re-
• considered
• Current Role
• Funding source to part-fund OpenSpirit 1 -
  Project No. 1
• Customer pull to realise vendor plug play
  environment
• Domain expertise input to development
• Resource input to OpenSpirit project 1
• Custodian of the commercial agreements between
  Prism the alliance
• Catalyst for OpenSpirit take-up
• POSC role (current)
• EP standards body
• Evolving standards for Interoperability
  Business Objects
• No direct linkage to OpenSpirit
• Problem now reversed for POSC-takeup. It is
  happening potentially moving more quickly than
  current POSC expertise or processes can cope with

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Alliance - Proposal for Future Role

• Retain current arrangements for Project 1
• Recognise the different requirements of vendors
  and Oil Companies
• Let the vendors solve their problems
• Let the vendors present a unified solution
• The alliances value is that it has brought
  together Oil Companies with a
• set of common requirements to enable multi-vendor
  plug play
• In reality only one major vendor was prepared to
  commit at the start -
• this is different now but commercial success is
  not yet assured
• Alliance is still important but its role should
  move towards
• Input to the product plans in terms of
  prioritisation technical input
• Operating Unit driven part funding
• Potential resource input to new developments
• Champions for O.U. take-up
• Approve new Business Model

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POSC - Future Role

• Speed up the Standards process
• Direct involvement in new data domain activity
• Assist POSC with Past track process currently
  under development
• Q. Are we providing the standard mappings to
  Epicentre?
• Incorporate in the Funding Model direct funding
  by new Company
• of the POSC involvement in the various extension
  projects
• New Company to be the implementor of standard
  data
• frameworks - first to market with the standard
  implementation.