Midasco Capital Corp V.MGC.H

Data.com Market

[spearhead]

The Winners - Small to Midsize Manufacturers - A $20 Billion Market Data.com's initial target market of small and medium sized discrete product, build-to-order manufacturers are especially in need of this type of service. Internet business portals will now provide small to midsize companies access to powerful ERP systems, long the domain of the Fortune 500, by significantly lowering their up-front and ongoing costs and dramatically reducing the system complexity and management burden. Typically, this class of manufacturer runs sophisticated, integrated manufacturing processes and their efficiencies would benefit greatly from the controls and real-time information provided by an ERP system. But most have limited human and financial resources. As a result, less than 10% of this targeted manufacturing segment has invested in traditional ERP software systems. Of the over 400,000 manufacturing sites nationwide that fit into this size category, over 320,000 have yet to purchase a sophisticated information management system. The Company believes that the predominance of these prospects would embrace a portal where the complexity of managing and running a full-featured ERP system is simplified and where they have a relatively low and predictable monthly cost. This business portal would give small manufacturers access to the people, tools and knowledge they needed to run their business and stay competitive in today's global world. A recent report by Advanced Manufacturing Research projected that the ERP software market would grow at a 32 percent CAGR to an estimated $66.6 billion by 2003. AMR suggested that the fastest growing segment of the market would be the small to midsize manufacturer (with annual revenues of $10 million to $250 million). AMR projects that ERP sales to the small to midsize market segment will represent a $20 billion market by 2003. In other words, the Company's initial target market is very large.