Interview with: Alfred T. Mockett, Chairman and CEO - featuring: their service management software for broadband and mobile data services that is helping wireline, wireless, cable and satellite operators worldwide deliver a new generation of IP-based services that seamlessly integrate voice, video and data into a single, connected experience.

Motive, Inc. (MOTV-OTCPK)

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The Vision For Motive Is To Transform The Way Consumers Install And Use The Next Generation Of IP Based Broadband Services And Devices At Home And On The Go

Data Services

Motive, Inc.

12515 Research Boulevard, Building 5
Austin, TX 78759-2220
Phone: 512-339-8335

Alfred T. Mockett
Chairman and CEO

Interview conducted by:
Lynn Fosse, Senior Editor
Published – December 21, 2007

Alfred Mockett, Chairman & CEO

Alfred Mockett joined Motive in February 2006 as Chairman and Chief Executive Officer. His career in technology and telecommunications spans more than 30 years, working in both private and public companies. Prior to joining Motive, Mr. Mockett served as Chairman and Chief Executive Officer of American Management Systems Inc. (AMSY), the $1 billion IT consulting and professional services company which was acquired in 2004 by the CGI group. Before AMS, Mr. Mockett served on the Executive Committee of BT for 10 years in a range of divisional capacities, including Chief Executive Officer of BT Ignite, BT’s $6 billion international broadband data and applications services business. Prior to this role, Mr. Mockett led BT’s initiative to bring together all of the company’s disparate international activities under BT Worldwide, a single division to deliver on BT’s vision to be a major player in the global communications marketplace. He has also held executive positions at Memorex Telex and General Computer Systems Inc. Mr. Mockett graduated with honors from the University of London.

Company Profile:
Motive provides service management software for broadband and mobile data services. Motive’s software is helping wireline, wireless, cable and satellite operators worldwide deliver a new generation of IP-based services that seamlessly integrate voice, video and data into a single, connected experience. With Motive, operators can leverage one service management platform to automate and remotely manage key customer touch points throughout the service lifecycle, across multiple services, networks and devices. The result is a consistent, unified experience for both customers and service providers that increases revenues from new and converged services, reduces fulfillment and support costs, and drives greater customer satisfaction and loyalty.

Mr. Mockett, what was your vision when you became CEO of Motive and where are you today?
Mr. Mockett: “I came into a troubled company. It was a company that was loved by customers, loved by employees and had established an excellent market position, but it was in the penalty box imposed by Wall Street because it had done the unthinkable; it had to announce that it was going to restate prior earnings. I came into the company with a threefold mission. First I needed to retool the management team. I needed to build a world-class management team and that involved looking for people that were long on telecom experience and long on public company experience in addition to having small company and software experience, then to blend the best of the outside with the best of the inside talent. That team has been in place for about eighteen months. I cannot stress enough the significant accomplishments of the team so far. The second objective was to address the company’s past accounting issues and resolve them. Over the last eighteen months we have systematically addressed and resolved these non operating issues, installed the appropriate internal controls and have become current with our published, albeit unaudited financials and related information. The third objective was to craft a compelling vision for the future, articulate the strategy to deliver on that vision and establish and execute on a robust sort of business plan that underpinned the strategy. I came in with three objectives and I think we as a team can put a strong kick in the box for each of the three objectives.”

CEOCFO: Please tell us about the business strategy; what you are doing and how you are doing it?
Mr. Mockett:  “Our vision is to transform the way consumers install and use the next generation of IP based broadband services and devices at home and on the go. Our target customer set are the global communication service providers and we provide a suite of software capabilities to those service providers that enables them to reduce the cost of provisioning and ongoing support of broadband services, allowing them to improve customer retention and customer satisfaction, and provide them with incremental revenue streams. That is the business model. Underpinning our vision is a five-pillar strategy, the first-pillar of the strategy is to pursue profitable revenue growth by expanding our product portfolio and we do this by investing a minimum of 20% of our revenue in research and development on an annual basis. The second pillar to the strategy is to achieve a singularity of focus, to focus exclusively on communication service providers and this has entailed an orderly disposition of our enterprise business so that we could focus on a single sector. Within that sector, we address all four technologies wireline, wireless satellite, and cable. The third pillar to the strategy is to expand our addressable market into contiguous market space and that involved a major push into mobility, providing a suite of capabilities in mobility for mobile device management and mobile service management that were analogous to the capabilities that we provided on the wireline side. The fourth pillar to the strategy is to expand our range of business models by offering pay-as-you-go alternatives as opposed to enterprise-wide licenses on term or perpetual basis so that we could tie our growth to the growth of our customers’ customer base. The fifth and final pillar to the strategy is to embark on a channel strategy involving focusing on the tier-one players of the world with our direct resources but using large scale systems integrators and large scale hardware manufacturers as channels to market at the global, regional and local level to augment our direct sales capability. Those are the five pillars to the strategy.”

CEOCFO: You have a who’s who list of customers; what do you provide?
Mr. Mockett: “If you order a broadband service, say a DSL service in the home, we would provide the software to the likes of AT&T and BT that would allow them to activate and provision that service and then on an ongoing basis provide service management all the way to remote control. Therefore, if there was something wrong with your broadband service, a person in the customer service center could remotely seize control of your PC with your consent and then they would fix it and hand it back to you all online and in real time. I assure you that from a customer perspective that is a tremendous advantage.”

CEOCFO: Why are customers choosing your software?
Mr. Mockett: “The competitive landscape in our business has relatively few players say around five software players and then a few hardware players which are trying to bundle the software with the hardware. We believe that our strategic positioning is the correct one in that we remain vendor independent and hardware agnostic. It means that our customers can mix and match multiple vendors’ equipment in their networks, but we can still service manage it across that range of hardware.”

CEOCFO: What are the biggest areas of growth for you today, and do you see that changing?
Mr. Mockett: “Our biggest area of growth is a mobile service management. The number of complex devices being used, mobile networks is growing exponentially. The Blackberrys, the TREOs the PalmPilots, of the world; these are very complex devices involving sophisticated setup and ongoing management. There is a tremendous point of pain here for the network operators and service providers. The cost for them to support an intelligent device in the network compared with a basic phone is six or seven times the cost of the basic phone. The early adopters of the Blackberry and Treo were corporate animals that were buffered from the problems with their IT departments. The current take up comes from the like of the soccer moms of the world who do not have the benefit of an IT department. Therefore, the number of inbound calls in the first year on these devices has ballooned from one to two calls in the first year to twelve to fourteen. You can see how that puts a huge pressure on the customer service center and it is no surprise that perhaps the number of seats in the call centers to deal with this type of problem is doubling every six months. There is a huge cost in customer service that needs addressing, which creates the market for us.”

CEOCFO: What is the financial picture of the company?
Mr. Mockett: “The financial picture is much improved. We have put the accounting issues of the past squarely behind us. As we stand today, Motive is debt-free, lawsuit-free, with sufficient cash on hand for the immediately foreseeable future. We enjoy strong market positions. We have a loyal and dedicated customer base, loyal and dedicated employee base and we are back on the growth path with improving margins and reducing losses. We have a strategic process under the way to scale the company and we have a baseline plan to drive to cash flow neutrality and break-even operating performance in the fourth quarter next year.”

CEOCFO: Why should potential investors be interested and what might they miss about Motive that should jump off the page?
Mr. Mockett: "At the moment we are trading on the pink sheets; that is an imperfect market and as all CEOs would say, I think it is severely undervalues the worth of my company. If I look at the assets that make up this company, we have a blue chip customer base of the top sixty to sixty-five communications network operators and service providers in the world. Throughout all the trials and tribulations of the last two years involving restating five years of financials and literally doing a financial reconstruction involving every material revenue transaction from January 1st, 2001, forward, we have not lost a single customer as a result of financial activity. In addition, there have been no operating issues, and on the contrary during that period we have added some 25 new customers.”

CEOCFO: What should people take away from this interview?
Mr. Mockett: “Motive is alive and well and well on the way to recovery. It occupies a unique position in its marketplace and has a wealth of intellectual assets and has been restored on its path to being a growth company.”


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“Motive is alive and well and well on the way to recovery. It occupies a unique position in its marketplace and has a wealth of intellectual assets and has been restored on its path to being a growth company.” - Alfred T. Mockett does not purchase or make
recommendation on stocks based on the interviews published.