AN ONLINE LETTER OF INQUIRY REGARDING CLOUDBYTE

-- Submitted by Terry Sneller

I believe that one of the major issues of concern in the world today is the rapidly expanding gap between the "Haves" and the "Have Nots." It seems to me, that Internet access can be used as both a gauge as well as a solution to this rapidly advancing disparity. In my opinion, inexpensive Internet access would be a boon to not only the financially and "informationaly" disenfranchised, but to the broader culture that provides such services, as well. Increased disbursement, through drastically reduced online cost for Internet services to those less able to currently utilize it would, in and by itself, generate ramifications so vast that I could but barely begin to exhaust the topic -- if I were to use the balance of these two pages.

What I would like to propose, is that a pilot or market test program be run to explore the financial and technical aspects of developing, marketing, selling and supporting an association that would take advantage of Apple Computer's Remote Desktop system (http://www.apple.com/remotedesktop/) -- which, I would like to point out, has an unlimited client license fee of $499; with, what appears to be, a technology limit of 5K users per administrator AND if properly implemented could address the issues I mentioned above.

Please allow me to jump to a very simplified presentation of a client-side perspective of the CloudByte personal Internet access scenario.

1. An applicant would be directed to the administrative site -- and fill out an application which would include some basic financial data.
2. Upon approval, connection costs would be established (on a sliding fee basis) and the applicant (now a new association member/user) would be given login information to the networking/server site.
3. After logging on to the network site -- using a multitude of older, recycled, less expensive PowerMac G3 (or newer) class computers, running OS 8.1 (or better) -- the user/member would be connected (via either dial-up or broadband) to their own personal online desktop from which they would have full and speedy access to the most current, centrally maintained, secure, Apple compatible operating system and application software available.
4. Other commercially available application software (as well as data files) would then be available to the user on a rapidly deployed (hopefully discounted) -- server to server or peer to peer -- basis.

I perceive that the initial client-side startup costs (including hardware and setup expenses) could be as little as $175-200 (probably less with volume and the possibility of acquisition costs approaching $0). The ongoing monthly expenses could initially cost as little as $5 and go up or down -- depending on the number of users and their sliding scale assessed fees. The more (and more affluent) users -- the less expensive the monthly fee would be for all concerned. By contrast, current new startup expenses and ongoing access to commercial providers are in the range of $500-800+ for startup and average $20 for ongoing monthly expense. This substantial reduction in the cost of Internet access could open up a much larger, financially depressed, demographic. Please note, that ultimately, the overall operational expenses could be quite accurately established and maintained on a modulated basis (using a 5K user model base).

I do not currently have any formalized (tax identified) structure in place to implement this system for a pilot/market test. However, I have approached many of my associates with this concept and could quite rapidly empower their various aspects of expertise, once fully funded. These individuals and organizations have skill sets in the following areas: Apple Technology, Advertising/Marketing/Public Relations, Sales, Legal, System and Business Administration, Security, web site design/construction, computer recycling and distribution, et al. On a personal level, somewhat abbreviated information regarding my various skills and background of experience can be found on my resume site: http://www.cloudbyteconsulting.com/.

I would like to think that with a completed and financially sustainable model as an example, various companies (Apple Computer as well as all other Apple compatible software developers) and organizations (like the Apple Users Network) would gladly provide additional support in the areas of group discounts, recycling and distribution and on/off line hardware and software support. In fact, I envision prospects of multiple spin-off and localized cottage industries in these and other areas.

Beyond that, should this concept gain critical mass, I could forecast a demand for, and revitalization of, the entire Broadband Industry from optical cable to wireless and satellite connectivity on an international level -- with initial deployment beyond this country preferably being into India. There is also the long range prospect of a similar (Linux based) program for the much larger Intel/PC Platform.

I believe that the initial and startup cost for a three month, market modeling, prototype development/debugging and evaluation program would require at least $4.5 million. The financial distribution would be as follows:
   * Marketing/Sales                  $1,500,000
   * Legal                               750,000
   * Business Administration             750,000
   * System Administration               600,000
   * Technology Capital Resources        500,000
   * Security Administration             400,000
It is anticipated that a pro forma projection/evaluation would indicate/confirm, that a single 5K user model base generating net monthly revenue of perhaps $20K, would take about 19 years to recover the initial startup expenses. However, each additional, successfully implemented, 5K user model base would of course, through economy of scale, reduce the capital recovery time, considerably.

Email: terry@newnebula.com

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