The market for CTRM software is not homogenous and consists of a number of overlapping markets identified by commodity group, geography and industry niche. For example, a generator in Florida will likely have a different set of needs than a rubber producer in Asia. In the past, we have looked at this as a number of triangles that overlap where each triangle represents the top, middle and bottom tier buyers in a specific market. The sum total of the area covered by the overlapping triangles is the total addressable market for E/CTRM software. Over the last months and years, we think that we are seeing a trend in which the top tier is being eroded and the bottom and middle tiers are growing. This is reflected in things like; – The exit of many banks and larger financial institutions from physical trading, holding inventory and even from commodities altogether in some instances due to regulatory pressures, – Issues faced by many power and gas utilities particularly in Europe where fossil fueled assets are essentially now stranded and unprofitable assets that need to be spun off or got rid of. Many of these mega-utilities/generators have lost huge amounts of money in
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