2002 ea budget with enw budget update / suggestions :
piper , richter , and webb met with whalley this saturday for a few hours on overall enrononline strategy and budget . we showed him the development completed to date and the general development list going forward . we also showed him the down time report as well as some growth numbers over the last 12 months . we also explained a few of the commercial objectives going forward . finally , we showed him the same suggested eol budget plan we showed you , including 2001 plan vs . 2001 forecast vs . 2002 plan as well as the allocation methodology . greg is generally ok with the total 2002 plan number for eol ( $ 37 . 7 million fully loaded with bonus , indirects and depreciation ) , why we want that money and where it would be spent . what he did not like was the allocation methodology , which is currently cost based and based on development and products . he suggested a charge that included a fixed fee plus a product setup fee plus a product maintenance fee plus a per transaction charge , etc . richter and webb are researching that and will try to see if it will work . i think you and i can agree the $ 37 . 7 million is good for 2002 but we still need to agree on your part for ea . the current cost based suggestion for ea for eol for 2002 is about $ 22 million . a question is , will you and lavo accept any charges for 2002 for eol based on transactions ? sheriff also has the entire eol suggested budget and his part . we meet eim and egm today on their total enw charges .
on operations , the current suggested 2002 ea charge is $ 44 . 7 million , which is also a fully loaded number and is slightly down from 2001 forecast ( sally and bob and i can explain that in detail this week ) . what i would like to do is agree between you and i that you will accept that as eas budget number for 2002 plan for operations . what we still need to work on is how we would possibly bill that in some fixed and variable form that includes transaction counts .
on infrastructure , the current suggested ea plan number for 2002 $ 40 . 9 million . this is down from 2001 forecast . this does not include the $ 10 . 5 million of controllable expense you budget directly for ea . the issue left here is what is eas headcount , what is the headcount in it development and what is the server infrastructure charge related to it development that would effect the ea number . on the first issue , we have the ea headcount as represented by hr . the current ea infrastructure charge assumes that complete number . it is larger than the number you have . you have requested we deal with some of that additional headcount differently since ea can ' t bill out those on a fully loaded basis . we will work with wes and his team on that today and tomorrow to come up with a plan .
on it development , the current suggested 2002 plan expense number for ea , fully loaded , is $ $ 44 . 5 million vs . a 2001 forecast of $ 34 . 4 million . also , the 2002 suggested capital number for ea is $ 50 . 1 million vs . a 2001 forecast capital number of $ 50 million . the question is , what did you get for your $ 84 . 4 million in 2001 and what would you get for $ 94 . 6 million in 2002 ? first , mark and sally and i met on sunday and we want the 2002 plan numbers to be down from 2001 forecast . what we need to do in the next three days is finalize what are the critical maintenance and new development projects for 2002 for ea . our team is bob hall , mark pickering ( mark will call on stock and perlman and rao and hotte as he sees necessary ) and greg piper with pickering having the final say for enw . can you tell me who you want from your side ( story ? belden ? ) to work with us three over the next few days until we agree ? we want to work on it around the clock until it is at least approximately right .
your thoughts ?
gp
greg piper
president & ceo
enron net works llc
_ _ _ _ _
2002 ea budget with enw
budget update / suggestions :
piper , richter , and webb met with whalley this saturday for a few hours on overall enrononline strategy and budget . we showed him the development completed to date and the general development list going forward . we also showed him the down time report as well as some growth numbers over the last 12 months . we also explained a few of the commercial objectives going forward . finally , we showed him the same suggested eol budget plan we showed you , including 2001 plan vs . 2001 forecast vs . 2002 plan as well as the allocation methodology . greg is generally ok with the total 2002 plan number for eol ( $ 37 . 7 million fully loaded with bonus , indirects and depreciation ) , why we want that money and where it would be spent . what he did not like was the allocation methodology , which is currently cost based and based on development and products . he suggested a charge that included a fixed fee plus a product setup fee plus a product maintenance fee plus a per transaction charge , etc . richter and webb are researching that and will try to see if it will work . i think you and i can agree the $ 37 . 7 million is good for 2002 but we still need to agree on your part for ea . the current cost based suggestion for ea for eol for 2002 is about $ 22 million . a question is , will you and lavo accept any charges for 2002 for eol based on transactions ? sheriff also has the entire eol suggested budget and his part . we meet eim and egm today on their total enw charges .
on operations , the current suggested 2002 ea charge is $ 44 . 7 million , which is also a fully loaded number and is slightly down from 2001 forecast ( sally and bob and i can explain that in detail this week ) . what i would like to do is agree between you and i that you will accept that as eas budget number for 2002 plan for operations . what we still need to work on is how we would possibly bill that in some fixed and variable form that includes transaction counts .
on infrastructure , the current suggested ea plan number for 2002 $ 40 . 9 million . this is down from 2001 forecast . this does not include the $ 10 . 5 million of controllable expense you budget directly for ea . the issue left here is what is eas headcount , what is the headcount in it development and what is the server infrastructure charge related to it development that would effect the ea number . on the first issue , we have the ea headcount as represented by hr . the current ea infrastructure charge assumes that complete number . it is larger than the number you have . you have requested we deal with some of that additional headcount differently since ea can ' t bill out those on a fully loaded basis . we will work with wes and his team on that today and tomorrow to come up with a plan .
on it development , the current suggested 2002 plan expense number for ea , fully loaded , is $ $ 44 . 5 million vs . a 2001 forecast of $ 34 . 4 million . also , the 2002 suggested capital number for ea is $ 50 . 1 million vs . a 2001 forecast capital number of $ 50 million . the question is , what did you get for your $ 84 . 4 million in 2001 and what would you get for $ 94 . 6 million in 2002 ? first , mark and sally and i met on sunday and we want the 2002 plan numbers to be down from 2001 forecast . what we need to do in the next three days is finalize what are the critical maintenance and new development projects for 2002 for ea . our team is bob hall , mark pickering ( mark will call on stock and perlman and rao and hotte as he sees necessary ) and greg piper with pickering having the final say for enw . can you tell me who you want from your side ( story ? belden ? ) to work with us three over the next few days until we agree ? we want to work on it around the clock until it is at least approximately right .
your thoughts ?
gp
greg piper
president & ceo
enron net works llc
_ _ _ _ _