Jennifer, 

This is apparently the type of deal flip-flop which BMC has been blessing EBS 
with.  In the note from Doug Cummins which contained his updated spend 
projections, he had the "Professional Services" highlighted with a bunch of 
question marks.  It is at the bottom of his sheet, and lists a qty of 30 @ 
$2000 per = $60,000 --- I assume that's $2K/hour or per day.  Either way, 
it's not something that appears palatable to them (Net Works).  I'll be going 
over there in a few minutes, and will try to check w/each of the guys.  I'll 
keep you posted.

Jeff
----- Forwarded by Jeff Youngflesh/NA/Enron on 12/13/2000 02:41 PM -----

	Stephen Morse@ENRON COMMUNICATIONS
	12/13/2000 02:10 PM
		
		 To: Chaz Vaughan/Enron Communications@Enron Communications
		 cc: Jeff Youngflesh/NA/Enron@ENRON, Brad Nebergall/Enron 
Communications@Enron Communications
		 Subject: Re: BMC Update

Clarification on the below.

Point #1 our position has been $3MM on software (they are saying they need 
$4MM to get the deal done.)

Additionally, they want Maintenance and professional services to go with the 
dollar amount.  $2.4MM is their position here.  I need your help to clarify 
with each group who is on board with maintenance and profesional services.  
BMC's #2 guy Jeff Hawn told Jim Crowder this was critical for them.

Thanks,

Steve


Steve Morse
Enron Broadband Services
713-853-7137-work
713-569-7912-cell
email:  stephen_morse@enron.net



	Chaz Vaughan
	12/12/00 07:29 PM
		
		 To: Jeff Youngflesh/NA/Enron@ENRON
		 cc: Stephen Morse/Enron Communications@Enron Communications
		 Subject: Re: BMC Update

Jeff,

Thank you for your efforts on the BMC deal.  We are making real progress.  
Here are the answers to your questions:

1.  How much do they want you to guarantee them in BMC revenue?  
$4 MM in software and $2.4 MM in maintenance and professional services
2.  Are you still looking at a $13MM TCV over 5 years?  
No, our current TCV over 5 years is $10 MM 
3.  Have I properly conveyed the "accepable-to-BMC method" of proving 
purchase commitment from Enron?  
Not sure what you mean here
4.  Your note re:  getting the Prof'nl Svcs contract signed says it has to be 
done by 6pm the 14th...what if you don't get it until the morning of the 15th?
We prefer the 14th, but if we can't get it until the 15th, that will work


Please let me know if you have any other questions.  I will call you tomorrow 
to touch base.

Thanks,

Chaz Vaughan
Enron Broadband Services
1400 Smith Street
Houston, TX  77002
Ph:  713-345-8815
Cell: 713-444-3074
Fax: 713-853-7354
Chaz_Vaughan@enron.net 



	Jeff Youngflesh@ENRON
	12/12/00 04:43 PM
		 
		 To: Stephen Morse/Enron Communications@Enron Communications, Chaz 
Vaughan/Enron Communications@Enron Communications
		 cc: Jennifer Medcalf/NA/Enron@Enron, Brad Nebergall/Enron 
Communications@Enron Communications, Eric Merten/Enron Communications@Enron 
Communications
		 Subject: BMC Update

Steve/Chaz - 

I have taken your EBS Professional Services contract through our contracts 
folks, and we have ended up with it now being in EBS' contracts dept w/one of 
your attorneys.  Our contracts Director, Tom Moore, and I spoke w/Eric Merten 
(PDX) early this afternoon, and he now has the contract.  EBS may have some 
Intellectual Property issues related to ownership of BMC Consultant-developed 
materials (while being paid by Enron).  Eric is in the driver's seat with the 
contract at this point.  

I have sent notes to all of the Net Works directors currently engaged in one 
form or another with BMC product and/or personnel.  In it, they have been 
requested to help us understand our opportunity from a number of angles:  
Application(s) considered, attractiveness of the new pricing, attractiveness 
of the BMC flexibility w/regard to "purchase commitment", etc.  In addition, 
I have re-iterated the time urgency.

I have followed up the note w/telephone calls & messages to all of them:  
Doug Cummins, Randy Matson, Bob Martinez, Jim Ogg, and Bruce Smith.  I am 
meeting with Bob Martinez on Wednesday at 3pm.  Matson, Ogg, and Smith have 
me in their voicemailbox, Cummins was in a meeting and he said he would call 
me back.

Would either one of you please let me know what BMC wants EBS to do for 
them:  how much do they want you to guarantee them in BMC revenue?  Are you 
still looking at a $13MM TCV over 5 years?  Have I properly conveyed the 
"accepable-to-BMC method" of proving purchase commitment from Enron?  Your 
note re:  getting the Prof'nl Svcs contract signed says it has to be done by 
6pm the 14th...what if you don't get it until the morning of the 15th?

I will call you to follow up on this note.

Thank you,

Jeff Youngflesh