Transcript

00:00:00 - [KEVIN_PRILL]
Well

00:00:01 - [SCOTT_WARNER]
No. That's perfect. Yeah. I had asked him for kind of an introduction just to kinda get in front of you guys and and oops. I almost left the meeting, and figure out kinda what next steps look like. Yeah. So I'm also bringing Shawn Remick on the call. He just he joined. So Shawn is kinda helping me with various projects, but he's he's in the IT department and kinda runs, like, app integrations and and things like that. So he's kinda he's more in the weeds on on a lot of the details than I am.

00:00:32 - [KEVIN_PRILL]
Fantastic.

00:00:33 - [SCOTT_WARNER]
I didn't check our agreement for this, but I'd ask that I'm gonna share some things with you today that I'd ask that you kinda keep to you or your company as necessary, you know, just not spreading it in the industry.

00:00:46 - [KEVIN_PRILL]
But know? Absolutely. Everything you said today is confidential. That's how this kind of you can't record Oracle Zoom meetings at all. That's our policy if you give an idea of the confidentiality that we kinda make important.

00:00:58 - [SCOTT_WARNER]
I figured as much. So but I my boss asked me just to kinda state it out loud because I was like, I I trust them too. You know? So Yeah. Okay. So the the real crux of our issue is is that so I work for a company called TTS, and and we are really, I guess, cousin companies of Shaper and a few other companies. But the the Shaper entity itself is going to be shut down this year. So that's what's kinda driving the issue. It's not public knowledge yet, so we're kind of trying to figure out what it looks like. With that, the CFO of TTS is is really pushing back on on signing a whole one year renewal of NetSuite thinking that it we only need it for, you know, six to seven months or something like that. So she asked that I reach out to you and find out, what are there any options for this that that would work? You know, we're trying to minimize the impact to the Shaper team, but, you know, we do wanna keep them in business through, Shawn, what is it? October 3?

00:02:08 - [SHAWN_REMICK]
Thirty first.

00:02:09 - [SCOTT_WARNER]
Thirty first. Yeah.

00:02:11 - [KEVIN_PRILL]
'20 So '26?

00:02:12 - [SCOTT_WARNER]
10312026. Yeah. Okay. So they'll cease to function at that point. They will be I I don't know which legal structure we're gonna go down as far as, like, whether they're merged into their parent entity or whether they're just closed or or what that'll look like. But what does this look like from a NetSuite standpoint? And, I mean, I understand if you haven't had to deal with it, you need to ask, but I just wanted to address it with you first. So

00:02:42 - [KEVIN_PRILL]
Yeah. These these are great questions. I appreciate you sharing this information because it is obviously very important with what we're talking about today. So I have dealt with this in some capacity. Everything's, you know, kinda case by case.

00:02:53 - [SHAWN_REMICK]
Yeah.

00:02:53 - [KEVIN_PRILL]
I've been at NetSuite for, you know, four plus years now, so I've I've seen a thing or two when it comes to renewals. So, essentially, here's what I can share. So what I first need to understand is, you know, kind of the, at least my experience with this, and I'm sure because you already have a parent structure and, you know, you have a a larger plan, this might might already have plans in place. K. But one of the most important things is where ShaprTool's historical data will be going to and where that data will be integrated to. Because that process can will usually, in my experience, take a lot longer than anticipated. Unless premeditated and have integration set up and and have that data either moving to another data warehouse or to another ERP or wherever that data is supposed to live at, having that plan and pay place is very, very important to understand what kind of term length actually makes sense for NetSuite and how it can live. Because, essentially, if NetSuite, let's say so the license end date the the actual end of license is August, the August, I believe the thirty first. So within thirty to sixty days, if you were to not renew the Shaprutool's instance, and you said, hey. We're we're moving from this, that data will be deleted, essentially. It will be, you know, pushed out. And, you know, the day after August 31, usually, you will, you will not have access you won't have access to the instance anymore. Right. So you would want that data out of there by August 31. But if you were planning on renewing, this is something that in the last eighteen months, our our team has kinda changed their their term length. Essentially, the lowest term length I can offer in most cases is twelve months.

00:04:50 - [SHAWN_REMICK]
K.

00:04:50 - [KEVIN_PRILL]
But given what you're telling me, I can go to the finance team and our contracts team and see if I can work on some approvals for something shorter, you know, push it out to August or maybe even, like, a six month term so you have a little bit of breathing room once either the shape or tools is, you know, cease to function as an entity. You still have access to that historical data. I will say likely we're gonna we're gonna get some pushback, and they're gonna ask for the twelve month term. One of that reasons is just historically, like I said, customers will do this, and then, you say October, turn into December or January, and then, you know, we have to go back and do a, you know, another short term renewal. So that's that's all I

00:05:32 - [SHAWN_REMICK]
yep. Can I ask a couple quick questions, Scott? Do you mind?

00:05:35 - [SCOTT_WARNER]
Yep. Please go ahead.

00:05:37 - [SHAWN_REMICK]
So looking at your terms, the hundred and twenty days is the data retention policy after the date by which we depart. How is that data normally provided to customers? We're gonna want the most minimal process available, so flat files would be fine. But what are those options? What do they usually look like? We we don't necessarily need NetSuite to to keep the data in.

00:05:58 - [KEVIN_PRILL]
Okay. That I will have to followup on. You know, I I have limited technical expertise, unfortunately, but I can ask how much data retention No.

00:06:09 - [SHAWN_REMICK]
Your agreement just says that you hold the data for a hundred and twenty days to allow transfer off of your platform. So to hear it's being locked out on the day of is definitely not what we expected based on reading the agreement. So, yeah, I'd love to understand that. I'd love to understand what the download file types are and that process looks like. I think our initial conversation is around downloading this and just keeping it in flat file configuration. Because as Scott shared, the business won't be it'll be dissolved at that point, and it'll be audited within the year is the intent. So, we won't necessarily need to access the data. We'll we'll carry over And and maybe, you know, for for the thirty days following. But, again, we could download all that as flat files. So, yeah, if we could under that's been one of our biggest questions, I think, is

00:06:56 - [KEVIN_PRILL]
Yes.

00:06:57 - [SHAWN_REMICK]
What file has we don't necessarily need to integrate with anything. We're more interested in the direct download option and whether I mean, you're owned by Oracle. So Oracle database is probably in the realm of a possible SQL database, you know, CSV flat file. That's the type of info that would be, I think, super helpful to understand. So you just brought that up, and it it's been a a burning topic on our our mind as well.

00:07:23 - [KEVIN_PRILL]
Yeah. Absolutely. And I guess that's something where, you know, our our subscription service agreement does change with time. And so I'm sure there's something in there that maybe I'm not as privy to in terms of data retention and how that gets transferred over. My understanding is on kind of the user, like, actually going into the environment, but I'm sure there's probably something a hundred and twenty days. That's good to hear, and that's something that

00:07:46 - [SHAWN_REMICK]
I would have. I would not anticipate being able to do a transaction, you know, to sell something after that date a 100. And we're talking through if we can't work through this, which I hope we can, but we're talking about what other system do we use as temporary stop gap to to get that handled, in that what might be August August to be September and October. So that sixty day window, what do we do to to to use a different product then if that's what's needed to be done? But, we could that your folks will give us some some agreement to six months or or some iteration thereof.

00:08:22 - [KEVIN_PRILL]
Yeah. Something that something people have done in the past, and this is something where, you know, I haven't actually done transactions like this, but I've I've heard a lot of it is when there's acquisition or a dissolving and merging of entities that use our we have something called our analytic warehouse. It's a it's a data warehouse and a BI tool in one, and it's essentially it lives, in a separate entity. People will set that up, the standard one. It's pretty cheap, and then they'll move all the data into the analytic warehouse and then move it out. And they will usually because Shaper Tools only has six months ish to the to the license. You're only paying for it for that six months. So you can set up the analytic warehouse, get a cheap little implementation, or implement it yourself, and it gets set up, move all the data. And the connector there's prebuilt connectors. One of them is obviously to NetSuite. That's very easy. So it gets set up and move the data in. I it sounds like from your reaction, maybe that could be an option. That's something people have done in the past that I think has worked very well, and you have a lot of runway for it. So I could definitely, you know, look into the pricing on that

00:09:32 - [SHAWN_REMICK]
and what that would

00:09:33 - [KEVIN_PRILL]
look like.

00:09:34 - [SHAWN_REMICK]
Can that be kept after the NetSuite transactional functionality is no longer existent? I'm just curious.

00:09:40 - [KEVIN_PRILL]
That's a question I'd have to add. That would be very interesting. What I could see my initial guess in in just off is probably no because it would be coterm to your license, but it is a separate it's technically Oracle licensing because it's a Oracle product that they moved down to NetSuite for us to use. They down they essentially subsidize it for NetSuite customers. It's a lot cheaper than the Oracle database.

00:10:05 - [SHAWN_REMICK]
Seems like it'd be a great avenue to capture revenue from folks who are leaving. I'm just

00:10:10 - [KEVIN_PRILL]
Exactly. That's something that people and so I think what I would be able to do and this is me hearing remembering from a peer who did something similar. You renew the ERP for a very for essentially the bare bones, like, literally a user and the base licensing at, like, an 80 discount or some something ridiculous. And then you keep the analytics warehouse so it maintains for, you know, another six months or another twelve months, and you're having it at essentially, you know, 90, discounted of what you were currently paying. I have heard of people doing that. So and I guess it would be this is the the use case for that scenario. So I could definitely go back and, you know, ask the question of, like, hey. What can we do in this scenario? Could could an analytic warehouse could we do this? And then, you know, decidedly, you know, renew the the whole scenario at a at a much lower cost and just keep the analytic warehouse up for the next six months or whatever.

00:11:10 - [SHAWN_REMICK]
Yeah. I think we're was just gonna say I think we're flexible. I just think that a year is is is where we've we've had some challenges. Go ahead, Scott. Sorry, man.

00:11:21 - [SCOTT_WARNER]
Oh, you're fine. I just I was gonna say I talked to our controller today and just asking him what was the plan for, you know, data, and he basically said that the auditor will just audit the closed company at that point, and and they're not really worried about carry forward. So I I do think, Kevin, like, a short carryover where where things could be looked at is is a good thing. Yeah. But I I wouldn't wanna I don't think it would be a long term thing because quite honestly, the shape or the deep is is going away. So Yeah.

00:11:54 - [KEVIN_PRILL]
So I guess that's information. How can we get to October with that data is what I'm kinda hearing. How can we get past October? Like, a so to December is maybe what is would be ideal?

00:12:07 - [SCOTT_WARNER]
I would say December is good or maybe even out to, like, a February if we needed to go out farther for whatever reason or something. But I think, like, February was kind of the the outer limits of where we thought it might be needed or something. Okay. Just just Yeah. There was, like, an end of your audit, you know, usually in January. So then by February, we'd be done. So

00:12:25 - [KEVIN_PRILL]
Yeah. I really think now that I'm I'm thinking out loud a little here, I do think that the, the analytic warehouse would be our best bet for the short and get that set up sooner rather than later. So you Yeah. It would be about a six month term, and it would be discounted, and you'd be able to get the analytic warehouse and move the data over. And then at the renewal, we would just renew the analytic warehouse and the bare bones, renewal and push that out till February.

00:12:56 - [SHAWN_REMICK]
Okay. When is the renewal?

00:12:59 - [KEVIN_PRILL]
August 31 is usually, you're supposed to do it. You know, it's thirty days before your license end date is the renewal date, but the license end date is August 31. So for us, that's what's important.

00:13:10 - [SHAWN_REMICK]
So is the thought what would we do for September and October? Is the thought we would move to some other platform, or is there an openness to allow us to run transactions until the October?

00:13:20 - [KEVIN_PRILL]
I I think we'd be able to renew the for September, October, I think we'd be able to renew the ERP. Like, whatever the bare bones bill of materials needed is, we'd be able to renew it to essentially February with the analytics warehouse

00:13:42 - [SCOTT_WARNER]
K.

00:13:42 - [KEVIN_PRILL]
In tandem to do if if, you know, if transactions are needed to, still maintain, we just renew it for kind of that six month period, eight month period.

00:13:52 - [SHAWN_REMICK]
I guess I wanna just be really clear that if we're gonna keep we're gonna keep the transactional side of NetSuite operational from September 1 to October 31, that would I I wanna be careful about the term bare bones because they do use some API calls. They're probably gonna have more than one user. Okay. You know, we talked about, you know, we talked about, oh, if we have to go to another product for for that period, what does that look like? And I think that looks like a few users, not I think we have 30 today. I don't know if it's 30 users, but I I do think the best case scenario here and, Scott, correct me if you feel differently. Our best case scenario is that we could extend the at least some portion of the functionality as is through October 31. And then it would be nice to be able to see the data until January or February, like Scott indicated.

00:14:56 - [SCOTT_WARNER]
So I mean, I'm hoping, Kevin, to it renewing as is until February if if that's the best path forward because as Shawn said, there's I'd rather have full functionality for as long as I can and then figure out the data offloading as we go. So just trying to better understand kinda how you were saying it.

00:15:15 - [KEVIN_PRILL]
Yeah. I guess what I was maybe bare bones is the wrong term to use there. I would say a par down net keep costs down is was my assumption is the goal. Whatever is not needed for the the goal of Shaper Tools transacting until October or even February, we would remove that licensing, and discount the ERP as much as possible because that's almost since it's only till October, it's really what you're looking for. We would try and get that price as low as possible. Okay. And it's just we are technically adding functionality with the analytic warehouse. We would just extend that out until February as well so the data can live there. And then we would have kind of those simultaneously, then they would just both drop off in in that February timeline, whenever everything's kind of you know, you're in the clear moving everything over.

00:16:08 - [SCOTT_WARNER]
That would work, Shawn. What do you think?

00:16:10 - [SHAWN_REMICK]
Yeah. I think that's good. I think I'd still like to ask the question what the file export procedure and process is.

00:16:16 - [KEVIN_PRILL]
Absolutely. I I need to I I can go get that information for you.

00:16:19 - [SHAWN_REMICK]
Because if that's real clean if that's real clean, we may not even need the data warehouse. But I think I I do think our best case scenario is that we could at least keep the the core functions in NetSuite operating, you know, through through November 1 at minimum. We don't want to do something else. You know? And we we know that there would be a a cost to to to keeping it for a shorter period of time. But at at the end of the day, we we'd prefer to stay with NetSuite through the end, but we we have contingency planning Yeah. That we've talked through. I think NetSuite would be the easier option at this point. Yeah.

00:16:59 - [KEVIN_PRILL]
Well, I I can get answers on what it looks like for for the final data kinda, retention and how that transfer looks so I can try and get answers on that as soon as possible. And then I'll put together I'll I'll work with financing contracts. I'm glad we're talking about this now versus, you know, two weeks before the licensing date so it gives us a little more runway to to figure out kind of best path forward. I'll just put together a couple proposals and see what we can, what makes the most sense and what financing contracts are kinda willing to work with to give me our initial proposals, which I'm sure given the situation, we're gonna be able to put something close together for from what we're talking about. And then just keep me in the loop on on what sounds best, and I'm sure if you wanna. If we do go the analytics warehouse route, I'm sure you'd wanna see possibly a demo just to get an idea of what it would look like. And then we might need depending on your comfortability with implementing some of the a lot of people do self implementations, but if you want us to just set it up, we could also do that. No problem. So we can keep in loop on

00:18:05 - [SHAWN_REMICK]
Scott, we should check and see if SawStop. One of our other entities has NetSuite as well. We should see if they have it. Maybe they have an expert in house too that could partner with us.

00:18:13 - [KEVIN_PRILL]
Yeah. That could also a 100 help. Yeah. Well, just let me know on I I will put that together. Let me know, best next steps from there.

00:18:21 - [SCOTT_WARNER]
K.

00:18:22 - [KEVIN_PRILL]
And we can, reconvene, as soon as we get answers back.

00:18:26 - [SCOTT_WARNER]
I appreciate that, Kevin. Yeah. Let us know. And if you need anything in writing for your finance team or something, just contact me, and I can get you a letter or something like that.

00:18:34 - [KEVIN_PRILL]
Yeah. I I might need that at some point. I don't think I'll need it right now, you know, but I I may, so I appreciate that.

00:18:41 - [SHAWN_REMICK]
Yeah.

00:18:41 - [KEVIN_PRILL]
And I will try and reconvene. I am next week, I'm out of office next Thursday and Friday, so I'll try and get these polls out by this week and then maybe reconnect early next week if that works just to, you know, reconnect and understand, you know, what we should be working on.

00:18:57 - [SCOTT_WARNER]
Sounds perfect.

00:18:58 - [KEVIN_PRILL]
Alright. Perfect. Well, thank you, Shawn. Thank you, Scott. Appreciate you, coming today, and, you'll be hearing from me very soon.

00:19:04 - [SCOTT_WARNER]
Thanks, Kevin. I appreciate it.

00:19:06 - [KEVIN_PRILL]
Okay. Awesome. Have a good one.

00:19:07 - [SHAWN_REMICK]
Bye now.