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CmnLn Elec Exch: Draft Letter of Intent and Introduction




This is directed to Karen Haney, Jon Kroehler and members of the Electronic 
Exchange Sub-committee.  Please review.  It addresses the NAI offer, who might 
be interested and the deadline (or its lack).  In this context, it encourages 
members to return a letter of intent to NAI if they are interested in the 
offer.  Please respond to me or to the listserve with suggested changes. 
Pending general approval, this message will go out soon via the distribution 
channel Karen recommends.  Thanks to Darwin Peiffer for drafting the letter of 
intent.
Scott Fullerton
p.s. The line-separators of the day are circumflex (^) and tilde (~)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Many of you have kept abreast of developments relating to the purchase of PGP 
software.  As you may therefore know, there is a very attractive offer extended 
to all CommonLine members to purchase PGP software. This offer is available for 
a limited time.  The CommonLine meeting in San Antonio reviewed it and accepted 
it by unanimous vote. I am writing to bring ALL CommonLine members up to date 
on the offer, to help you determine whether it applies to you, and if it does 
TO URGE YOU TO RESPOND QUICKLY BY SENDING ALONG THE LETTER OF INTENT FORM 
(provided below) to the software vendor, Network Associates Inc.(NAI).

CommonLine must use PGP when transmitting data by means of the POP3 messaging 
protocol. PGP adds necessary security to the transmissions by encrypting the 
data files and protecting them from tampering.  For a detailed discussion on 
CommonLine migration from CompuServe proprietary mail system to POP3 and on the 
principles and use of PGP, see the addendum to Chapter 9 of the CommonLine 
Reference Manual.

The NAI offer provides PGP end-use and development software for 16-bit and 
32-bit Windows, the option to purchase licenses for distribution,  and support 
through May 1999. Initially NAI stipulated we must purchase in March.  But at 
this time, both sides are still working through the licensing terms to arrive 
at an agreement that will be most acceptable to both sides.  The way things are 
going, it does not seem feasible for us to close a deal yet this month.  This 
being the case, they are looking into the possibility of extending the offer.

As we finalize the license terms and learn more about any new deadlines, the 
CommonLine Electronic Exchange Subcommittee will pass the information along to 
you.  In the meantime, we strongly encourage you to fill out the letter of 
intent if you are interested in purchasing software and/or licenses. This 
should be done very soon.  We would like to get all letters returned to NAI 
well before March 31.  This does not oblige you to anything, but it should be 
an accurate indication of your intent to purchase at the time purchase becomes 
possible. This will greatly assist our efforts to close the deal.

Please don't hesitate to call with any questions.
Scott Fullerton
Chair CommonLine Electronic Exchange Subcommittee
608.246.1779
sfullerton@glhec.org
------------------------------------------
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
WHO MIGHT BE INTERESTED IN THE OFFER
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
------------------------------------------
GROUP 1: Schools using School-Based-Software to send CommonLine transactions.

No action is necessary.  This will be addressed in your School-Based-Software
~~~~~~~~~~~~~
GROUP 2: (a) Schools using software developed in house to send CommonLine 
transactions via CompuServe and (b) Service Providers using CompuServe for 
CommonLine transmissions but not distributing School-Based-Software.

You should review the offer.  If you haven't already done so, you will probably 
want to purchase the software for $130.50. You will NOT need any extra licenses 
unless you are distributing software to others.
~~~~~~~~~~~~~
GROUP 3: Distributors of School-Based-Software.

You should review the offer. If you haven't already done so, you will probably 
want to purchase the software for $130.50. You WILL need extra licenses, one 
for each installation transmitting via POP3.
---------------------------
^^^^^^^^^^^^^^^^^^^^^^^^^^^
     THE NAI PROPOSAL
^^^^^^^^^^^^^^^^^^^^^^^^^^^
---------------------------
NAI propose to offer the following
1) 	Software for $130.50  (versions 4.x for end-use and compatible development 
tools all based on the RSA algorithm,  along with the SDK, their newest 
toolset, which uses only the Diffie-Hellman algorithm).
2) 	License to embed software in SBS for $25/installation.  The licenses can be 
transferred when we upgrade to their current version.
3) 	Support through May 1999.  There is no extra support charge.
-----------------------------------
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
    PRODUCT VERSIONS AND ALGORITHMS
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
-----------------------------------
The product set we will be using is several releases and one full version 
number behind their current offering, but it is the only set of products that 
fully supports a common algorithm, RSA, across all platforms where CommonLine 
applications might run.  NAI is phasing out its use of the RSA algorithm in 
favor of Diffie-Hellman.  Unfortunately the two algorithms are mutually 
incompatible, and there is no "bridge" technology.  The most recent release of 
the development toolset (the SDK) does not support RSA, only Diffie-Hellman, 
and Diffie-Hellman is not available for 16-bit end-use or development. Our 
options are determined by the lowest common denominator.   Since many SBS 
products are still 16-bit Windows, our entire network must settle on an 
algorithm that is available to that platform and compatible with the rest.

The NAI offer has two important protections to offset the obvious problems 
attending the purchase of outdated software -- promise of technical support 
through May 1999 and an easy upgrade path to their newest version, when 
CommonLine is ready to move away from 16-bit Windows.

---------------------------
^^^^^^^^^^^^^^^^^^^^^^^^^^^
    LETTER OF INTENT
^^^^^^^^^^^^^^^^^^^^^^^^^^^
---------------------------
INSTRUCTIONS:
Please fill out this Letter of Intent by doing the following:
1)   Copy the letter below into an e-mail message addressed to Brian Jackman, 
Manager of OEM Sales at Network Associates Incorporated.  His e-mail address is 
 bjackman@pgp.com
2)   Replace the underscores with information that pertains to you.  Under item 
1, indicate whether you are interested in purchasing the software for $130.50. 
 Under item 2, indicate how many licenses you wish for embedding in software to 
distribute.  If you do not intend to distribute outside of your corporation, 
place 0 in this section
3)   Send the message with the subject header, "Letter of Intent For Purchase 
of Encryption Software: CommonLine Agreement"

--------------------------------------------------------
Dear Mr. Jackman:
The purpose of this Letter of Intent is to summarize discussions to date 
between representatives from NAI and CommonLine and to confirm our respective 
intentions with respect to the proposed transaction.

1.   ___________(Agency Name) ______(wishes)/(does not wish)to purchase the 
Software for End-Use or Development, which includes the following, at a cost of 
$130.50:
    (1)   ViaCrypt PGP/BE for Windows v4.0 Single User (16-bit end-user product 
and DLL's for development)
    (2)   PGP for Windows v4.5.1 Single User (32-bit end-user product and DLL's 
for 32-bit development)
    (3)   ViaCrypt PGP for Windows Toolkit v4.0 (works with PGP/BE v4.0)
    (4)   PGP toolkit for 32-bit development (works with PGP v4.5.1)
    (5)   SDK toolkit for 32-bit development

YES   _____                                NO _____

2. ___________(Agency Name)intends to purchase license for the above-referenced 
software, at a cost of $25.00 per End-User, totalling _____.

3.    Network Associates Incorporated agrees to provide support for versions 
4.0 and 4.5 through May 1999.  Thereafter, a negotiated cost for support would 
be determined.

4.    The Point of Contact for ___________(Agency Name)
   name:    _____________
   address: _____________
   phone:   _____________
   fax:     _____________
   e-mail:  _____________

5.    In the event that a contract is not signed for any reason whatsoever, 
________(agency name) or Network Associates Incorporated shall each have the 
right to terminate the negotiations without liability to the other party.

This document is a Letter of Intent only.  It is not intended to be, and shall 
not constitute in any way, a binding or legal agreement, or impose any legal 
obligation or duty on either party.

If the foregoing reflects our mutual statement of intention, please return a 
message to the Point of Contact referenced in paragraph 4 of this letter.

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