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LOT-956 - IBM LotusNotesDomino 7 Implementing - Administering Security - BrainDump Information

Vendor Name : IBM
Exam Code : LOT-956
Exam Name : IBM LotusNotesDomino 7 Implementing - Administering Security
Questions and Answers : 160 Q & A
Updated On : December 12, 2018
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LOT-956 exam Dumps Source : IBM LotusNotesDomino 7 Implementing - Administering Security

Test Code : LOT-956
Test Name : IBM LotusNotesDomino 7 Implementing - Administering Security
Vendor Name : IBM
Q&A : 160 Real Questions

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IBM IBM LotusNotesDomino 7 Implementing

IBM Releases Open Liberty 18.0.0.three with assist for MicroProfile 2.0 | killexams.com Real Questions and Pass4sure dumps

IBM's third quarter unlock of Open Liberty 18.0.0.three facets full aid for MicroProfile 2.0 and a focus on the MicroProfile Metrics API.

First introduced simply over a yr in the past, Open Liberty is an open-source implementation of IBM's WebSphere Liberty application server to build microservices and cloud-native applications. Making its debut in 2012, WebSphere Liberty changed into designed to be small and light-weight, and has served Java EE 7 licensed functions that are deployed in predominant structures corresponding to Docker, Kubernetes, and Cloud Foundry.

Writing about the natural evolution for microservices development, Kevin Sutter, MicroProfile and Java EE architect for WebSphere at IBM, pointed out:

Open Liberty has been one of the vital leading open-supply implementations of the MicroProfile platform. Ever when you consider that the primary MicroProfile 1.0 free up in 2016, Open Liberty has supplied a fully-compatible, production-able implementation quickly after the neighborhood completes the respective necessities. This brief beginning cadence with the aid of Open Liberty means that you can scan with new MicroProfile APIs just about as soon as they are described. The latest Open Liberty deliverable helps both MicroProfile 1.four (in accordance with Java EE 7) and 2.0 (in line with Java EE eight).

Open Liberty publications and tools

developers can take abilities of Open Liberty interactive and static courses. The 15-minute e book on MicroProfile Metrics demonstrates how to implement gadget and application metrics from a sample inventory microservice.

After cloning the repository, change over to the finish directory and execute here Maven command:

mvn set up liberty:delivery-server

once the server is operating, here URLs can be found:

http://localhost:9080/stock/systems https://www.localhost:9443/metrics

The /metrics endpoint on port 9443 will screen output from the @Timed, @Gauge and @Counted annotations.

developers can also take advantage of Open Liberty equipment, a collection of lightweight tools for establishing, assembling, and deploying apps to Open Liberty, with all Open Liberty repositories accessible from GitHub.

Open Liberty and OSGi

OSGI is an integral part of Open Liberty. In a fresh EclipseCon 2018 presentation, Alasdair Nottingham, WebSphere and Liberty runtime architect at IBM, demonstrated how OSGi is used to construct Open Liberty. here diagram demonstrates how Java EE packaging is mapped to OSGi modules.

In a fresh groups.io dialog, Nottingham explained why OSGi is rarely precisely "en vogue" within the Java neighborhood:

Open Liberty makes use of OSGi as part of the runtime implementation, but we don't provide an utility programming mannequin according to OSGi. a big part of the explanations for this is as a result of we put OSGi application support into our commercial product and didn't see a enormous uptake in place of vanilla Java. It seems that many builders see the extra complexity of OSGi and not the benefits. As you examine it isn't 'en vogue'.

after all, we don't talk about OSGi and Open Liberty since it is in fact an implementation element of how we supply the runtime.

Nottingham spoke to InfoQ about this latest free up of Open Liberty.

InfoQ: What are the function desires for each quarterly unencumber of Open Liberty? Is there a main function focused for each and every free up?

Nottingham: We desired to carry Open Liberty the usage of an agile strategy. This means instead of set desires for every quarter, we manipulate a backlog of labor we are doing and we ship the characteristic when capable, instead of on a specific date. We do set desires for some characteristic, but even then we don't cease the coach if it can't make it. Some facets that we now have set dreams for in the past were the Eclipse MicroProfile releases, we aim to ship aid for those API's in our free up following the Eclipse MicroProfile free up. it's definitely critical to me, because the lead, that we ship when capable so we make sure it's right and the fine is there. Open Liberty releases this year have included comprehensive support for Java EE 8 and Eclipse MicroProfile 2.0 as well as adding guide for Spring Boot functions, authentication by means of social media providers, OpenID connect, HTTP session failover the use of JCache suppliers like Hazelcast among others.

InfoQ: What makes Open Liberty wonderful over the different middleware application servers?

Nottingham: I consider there are three issues that make Open Liberty in reality interesting:

  • We guide distinct models of Java EE within the same unlock. That capability you could choose whether to run Java EE 7 or Java EE eight. You don't seem to be compelled to make the choice of 1 or the different. you should be in control of moving ahead. It also skill you greater easily get all of the protection and useful fixes.
  • We have been designed from the ground up to be modular and to guide a choose and mix for server capabilities. This wasn't retrofitted after the truth. I comprehend it is typical for some americans to think they'll just take Tomcat and stuff within the additional Java EE capabilities into their software. however that would not produce the most efficient runtime. there is precise work to be achieved to be sure all these technologies work well and successfully together, and that is what we did with out requiring you to run everything in every deployed instance.
  • We do not force configuration or software migration for new releases. i do know for many people this could seem to be form of boring, but no one likes having to update their code just to use probably the most contemporary version of a downstream dependency. no person likes having to recode their application or re-configure the server simply to go from one version to one more. It adds friction and takes you far from the vital element - your application. With Liberty, we nevertheless guide server configurations produced years ago with out exchange and, as long as you don't change from Java EE 7 to Java EE eight, you do not should recode your applications because we are able to continue to run them with Java EE 7. i know americans will claim that Java EE 7 and Java EE eight are ahead suitable, however we now have a list of Java EE 7 -> Java EE 8 migration gotchas and they simply go away.
  • InfoQ: Is IBM interesting in the use of OSGi to build Open Liberty?

    Nottingham: Open Liberty isn't unique in the usage of OSGi. WebSphere natural, Glassfish and Payara all use it as well, however the method we use it is very wonderful. We developed Open Liberty from the ground as much as definitely make the most OSGi. We use the modularity layer to: maintain our internals internal to eradicate classpath hell between the runtime and applications; use the OSGi provider layer (and Declarative capabilities) to be certain a fast, dynamic and parallel startup so as to delivery promptly, correctly, and lazily; and use the Subsystem layer to create the conception of features to compose our runtime so that you can simply use what you want.

    InfoQ: What's on the horizon for Open Liberty 18.0.0.four and subsequent releases in 2019?

    Nottingham: i am always hesitant to reply this variety of question as a result of I consider in transport when capable, now not on a date. bound it isn't all the time possible, however i'd hate to assert “we are engaged on X for 18.0.0.4,” then make a decision to slip it since it wasn't in a position and then have someone whinge that it didn't arrive. That mentioned, one of the vital things we are actively working on for the subsequent 12 months are:

  • Java SE eleven - we are actively engaged on this given Java SE eleven became just launched. We had Liberty working on Java SE 9/10. there have been a couple of limitations, however Java SE 11 threw some predominant spanners in the works that we need to tackle.
  • Eclipse MicroProfile - we're closely invested in the success of this task and our aim is to free up support for each MicroProfile liberate in our release following theirs. This might appear to be a small factor to have one liner, however there is a whole lot occurring right here, together with adding assist for reactive programming models.
  • Jakarta EE - certainly we are very drawn to this move and, whereas it is still in growth, our building group is involved within the discussions and we expect to aid Jakarta EE releases when they arrive out.
  • improving transparency into Open Liberty - probably the most issues we did after we first launched Open Liberty were compromises in the hobby of launching the code as open-source. One key enviornment is in construct transparency. We construct on IBM hosted hardware and the construct effects get posted to inside methods so you can simplest see the outcomes of a pull request that you put up in case you work for IBM. So we try to move the build output so it's publicly visible. We also had an issue with a huge number of tests where we could not open-source them as a result of they had been developed with our purchasers so we do not cling exclusive rights to them. We nevertheless run these tests as a result of they give price for finding regressions. but we're always seeking to in the reduction of the number of assessments we've behind the firewall, either by means of rewriting, or getting permission to circulate them.
  • Simplify integration into Maven/Gradle builds - we now have a group of plugins for constructing apps that set up to Liberty today, however they've advanced over 5 years and do not supply the simplest user adventure. So we're engaged on simplifying that in a facet challenge we name raise. i am fairly excited about this long run, however's a little too early to get into details just yet.
  • we have been very considerate about how to make Liberty play smartly in Docker/Kubernetes and Cloud Foundry, and proceed to treat these because the environments for which we need a really good DevOps experience. We do some of this as part of the style we implement guide for new Eclipse MicroProfile capabilities, however there are different purposeful and usability advancements we're delivering, like aiding the forwarded headers for HTTP proxies.
  • increase performance - I get that everyone does this all the time, but we are engaged on some cool improvements such as an auto-tuned thread pool which works out the highest quality variety of threads at runtime. we are planning on tweaking this algorithm to make it stronger, as well as methods we are able to shrink the measurement of Liberty to make it even smaller.
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    Seagate technology plc (STX), an international chief in statistics storage solutions, and IBM (IBM) these days introduced they're working together to reduce product counterfeiting using blockchain and protection technologies. The undertaking, which is designed to assist manufacturers, integrators, and enterprise companions fight counterfeit difficult drives, uses the IBM Blockchain Platform to authenticate the provenance of disk pressure products, bringing a new level of multi-layered protection insurance policy to the records administration industry.

    This press unencumber features multimedia. View the entire liberate right here: https://www.businesswire.com/news/home/20181108005093/en/

    in response to the overseas Anti-Counterfeiting Coalition, international alternate in counterfeit and pirated electronic items has reached more than $1.7 trillion in price. To check product authenticity, Seagate will replace the IBM Blockchain Platform on the IBM Cloud with product authentication records according to the Seagate cozy™ digital identification (eID) on the aspect of manufacture. each wonderful identifier (serving as an electronic fingerprint) can also be used to verify the identity of a hard pressure at any time all over its product lifestyles cycle. Seagate’s certified Erase employs cryptographic erasure expertise to supply a digital certificates of information purge, which is electronically signed by using the gadget under the Seagate cozy public key infrastructure (PKI) and saved on the blockchain for compliance administration with emerging international data privateness legal guidelines.

    building upon IBM’s blockchain capabilities and powered with the aid of the Linux basis’s Hyperledger textile dispensed ledger framework, the IBM Blockchain Platform is designed to permit community participants to append and look at blockchain facts in response to their level of permissioning. all through a product’s existence, know-how providers, provider suppliers, and conclusion users could be in a position to ascertain the product’s provenance on the blockchain, which offers an immutable record of hobbies. this may aid reduce information loss, fraudulent items and guarantee costs, whereas enhancing product assurance for valued clientele during deployment.

    “Blockchain expertise may also be extremely valuable in confirming provenance and authenticity of assets,” mentioned Bruce Anderson, international managing director, electronics industry, IBM. “The skill to work with Seagate to mix blockchain with advanced cryptographic product identification expertise is what sets this work apart, and indicators blockchain’s skills to reimagine the electronics product existence cycle administration methods. Counterfeit electronic components are a worldwide subject that requires an ecosystem-wide effort to tackle.”

    The eID and certified Erase capabilities are developed on the Seagate comfortable know-how, which may allow greater ranges of believe of product provenance and proof of facts erasure. shoppers can advantage from knowing that a pressure is a real Seagate product and that any facts on it can also be securely erased that can aid purchasers with their efforts to stick to overseas compliance requisites.

    “IBM has a proven heritage of expertise innovation as evidenced via its market management in blockchain technology for product provenance in a variety of industries,” pointed out Mark Re, senior vp and chief know-how officer at Seagate. “by way of combining Seagate’s innovations in product protection with IBM’s blockchain advantage, we wish to prove that we will aid reduce the incidence of product counterfeiting sooner or later.”

    As task construction continues during this mixed effort to battle global product counterfeiting, Seagate and IBM are looking forward to that they will extend the company community to include participation from give chain companions.

    About IBM Blockchain

    IBM is identified because the leading enterprise blockchain issuer. The enterprise’s research, technical and company consultants have damaged barriers in transaction processing speeds, developed the most superior cryptography to relaxed transactions, and are contributing thousands and thousands of lines of open source code to improve blockchain for corporations. IBM is the leader in open-supply blockchain options built for the business. considering 2016, IBM has worked with a whole bunch of customers throughout financial functions, give chain, govt, retail, digital rights management and healthcare to put in force blockchain functions, and operates a number of networks working are living and in creation. The cloud-primarily based IBM Blockchain Platform delivers the conclusion-to-conclusion capabilities that consumers should quickly prompt and efficiently boost, operate, govern and comfortable their own company networks. IBM is an early member of Hyperledger, an open source collaborative effort created to improve cross-business blockchain applied sciences. For more information about IBM Blockchain, consult with https://www.ibm.com/blockchain/ or comply with us on Twitter at @ibmblockchain.

    Story Continues

    About Seagate

    Seagate creates area for the human experience by innovating how facts is kept, shared and used. be taught greater at www.seagate.com. comply with Seagate on Twitter, fb, LinkedIn, Spiceworks, YouTube and subscribe to our weblog.

    © 2018 Seagate expertise LLC. All rights reserved. Seagate, Seagate technology and the Spiral emblem are registered trademarks of Seagate technology LLC within the u.s. and/or other countries. Seagate relaxed is either a trademark or registered trademark of Seagate technology LLC or one in every of its affiliated groups in the united states and/or other countries. All other logos or registered emblems are the property of their respective house owners. Seagate reserves the appropriate to exchange, devoid of observe, product choices or requisites.

    View source version on businesswire.com: https://www.businesswire.com/news/home/20181108005093/en/

    MULTIMEDIA attainable:https://www.businesswire.com/news/home/20181108005093/en/


    Is IBM basically Resetting the Cloud panorama With Its crimson Hat Acquisition? | killexams.com Real Questions and Pass4sure dumps

    Assuming it passes muster -- and there's no rationale to expect it won't -- IBM's (NYSE:IBM) introduced buy of pink Hat (NYSE:RHT) for $33 billion will make it the third-biggest M&A deal within the U.S. tech space ever. So even for a legacy big, here's critical company. And at $one hundred ninety a share, it be paying a 63% top rate from the place the target closed Friday. So for traders, the obtrusive question is: what is it about this particular deal that makes it so essential for IBM?

    To clarify what's up, MarketFoolery host Mac Greer has analysts Emily Flippen and Jason Moser be a part of him for this podcast to review the aggressive situation in the cloud, talk about the ways the crimson Hat acquisition will boost IBM's choices, and believe how this linkup might play out.

    A full transcript follows the video.

    This video was recorded on Oct. 29, 2018.

    Mac Greer: IBM making a huge deal. On Sunday, IBM agreeing to buy purple Hat for $33 billion or $one hundred ninety in cash per share. it truly is a 63% top rate to the place purple Hat closed on Friday. That sounds like a great deal, appropriate?

    Emily Flippen: it's.

    Jason Moser: It appears like lots.

    Greer: no longer unhealthy. IBM CEO Ginni Rometty says the deal is all about, "resetting the cloud landscape." Emily, I need to get into that here in a minute. the press liberate saying the deal describes pink Hat as "the area's leading company of open supply cloud utility." in the event you appear on the deal, shares of purple Hat up round forty seven% these days. IBM, down a little. a very good deal for IBM?

    Flippen: I feel or not it's a quintessential deal for IBM. or not it's an enchanting deal for crimson Hat. For a bit enjoyable reality, here is really the third largest deal within the U.S. history for tech.

    Greer: that's sort of enjoyable.

    Flippen: it's a fun fact. that's to say that, you will be aware that crimson Hat shares don't seem to be exactly at that $a hundred ninety expense. it really is as a result of the undeniable fact that this will want regulatory and shareholder approval before it strikes ahead. i would expect that to turn up.

    it's a thrilling deal for IBM. IBM has been posting really stagnant boom during the last few years. They essential to do whatever thing. They had been losing out horribly to rivals like Amazon and Microsoft during this area. This acquisition for them is an try to control every part of the cloud ecosystem for an enterprise. if you're an commercial enterprise, and you have got lots of actual assets, when it comes to common information storage, and you're trying to movement toward a cloud atmosphere, what they do is, they have an inter-between phase where you're operating in a hybrid cloud atmosphere. This deal goes to permit IBM to get in on the hybrid cloud atmosphere house and support businesses transition to that cloud environment. they are using red Hat to do that.

    Moser: I consider she hit the nail on the pinnacle there. It become a indispensable deal for IBM. we have now been speaking about IBM sort of just sitting there doing nothing over the past decade, extra or much less, as every other tech business we discus looks to be flying correct past it. typically, with massive tech agencies like this, which are a little bit greater in accordance with legacy success, you should go in there and make a large deal like this. it's why it be one of these top class, I believe. IBM in fact desires this. They don't want purple Hat to go looking around and spot if someone desires to up the ante a little bit. So, they may be paying a really heavy top rate these days.

    It more than likely goes via. perhaps there is some scrutiny there. however once I seemed at the two organizations, I think this in reality tells you everything you need to be aware of. in case you appear at the groups, you observe the disparity in the research and building line item on their earnings statements. in case you examine R&D as a percentage of earnings, for red Hat, or not it's about 20%. they may be plowing loads of the cash they make again into the business as a result of they need to preserve primary and maintain advancing. IBM's around 7%, and they're really doing that simply to tread water. and that is the reason what they've been doing for a long time now.

    to see them make a big deal like this isn't brilliant. I believe purple Hat's a great enterprise. the basics are sound. whether IBM truly does anything else in reality first rate with it continues to be to be viewed.

    Greer: in case you look at IBM the stock, it hasn't even been treading water. You seem to be over the remaining 5 years. Emily, we have been speaking about this before the exhibit. Shares are down. you've got lost money on IBM over the final 5 years. that is fairly challenging to do during this market.

    Moser: Yeah, it had the popularity for the longest time of, in case you could not in fact determine what form of promote it became and how you should definitely be investing, you could always just purchase shares of IBM and no one would dangle that in opposition t you because of its standing within the tech house. but undoubtedly, tech has modified so a good deal in just the fresh years, and IBM hasn't in fact been spearheading that trade.

    Greer: I are looking to talk greater about this thought of resetting the cloud panorama. IBM's CEO says that massive companies have moved round 20% of their work to the cloud. Let's simply take that as our starting element. That leaves round 80% that each one of those distinct corporations are competing for. IBM and pink Hat can go after that eighty%. however we've acquired just a few competitors. Let's simply review one of the vital names in that space. Amazon, Microsoft, and Alphabet.

    Flippen: What's entertaining about red Hat is they are focused on open-sourced systems. When a person goes out makes use of pink Hat as a issuer, they are no longer truly purchasing any classification of fabric software. all of the code is already available. in the event that they desired that, they may rather actually go onto GitHub and copy and paste it. What they're doing is, they're buying purple Hat help -- the technology, the skills it really is needed to put into effect that. or not it's going to be basically enjoyable to see how they compete. you'll word that loads of their rivals definitely use red Hat.

    What IBM is trying to do is announcing, "hello, we're now not going to be the large cloud provider that's Amazon web capabilities. but, we are able to as a minimum be the system which Amazon net services is working on." pink Hat's most widely subscribed product is crimson Hat commercial enterprise Linux. or not it's the working equipment that each one this know-how is running on. What they're attempting to do is get in on the bottom stage of that and take a look at to be a participant within the space with out necessarily without delay competing.

    We mentioned prior the way of life round IBM, how it's been a gradual growth enterprise, now not doing tons during this house. I consider it is where the controversy for this deal comes from. a lot of people see crimson Hat as an innovator, completely open-supply. Any business that can make $2 billion selling whatever it is free is a fine business in my e-book.

    Moser: [laughs] it truly is a good aspect!

    Flippen: So, the opportunity there for a cultural disillusion, as this business it's been such an innovator, this is been open-source, strikes to this conglomerate, this enormous, gradual tech business, it may well be a hard tablet to swallow for some employees. but IBM actually wants the increase.

    Greer: The historical lifestyle clash. now we have heard that story before. I believe back to AOL and Time Warner. we are able to see how the deal shakes out.

    John Mackey, CEO of total meals Market, an Amazon subsidiary, is a member of The Motley fool's board of directors. Suzanne Frey, an govt at Alphabet, is a member of The Motley idiot's board of administrators. Teresa Kersten, an worker of LinkedIn, a Microsoft subsidiary, is a member of The Motley fool's board of directors. Emily Flippen has no position in any of the stocks mentioned. Jason Moser has no position in any of the stocks outlined. Mac Greer owns shares of Alphabet (C shares) and Amazon. The Motley fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Amazon. The Motley idiot has a disclosure policy.




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    IBM partners with Narayana Health to implement iNotes via cloud to help reduce operational costs by 15 per cent | killexams.com real questions and Pass4sure dumps

    IBM has now partnered with Narayana Health to install its ‘iNotes’ an enterprise solution via Cloud that will help to implement an efficient email. The solution is a collaboration tool that will keep all the employees, associated professionals and other stakeholders completely connected. It will help lowering operational costs by around 15 per cent, improve reliability and manageability.

    The solution provides ease-of-use, simple administration and delivers business ready services through a security cloud environment. The iNotes is virtually accessible from anywhere and across platforms and available in 22 languages.

    The hospital now has access to business class email, a collaborative calendar and contact management that can be virtually accessed anywhere in a security rich cloud environment, It not only benefits the hospital administration, but also its caregivers who can now collaborate quickly, share files and manage projects seamlessly through cloud. This allows physicians, nurses and other employees to contribute easily across projects, create communities quickly and effortlessly and work as a cohesive team with better communication.

    Prior to the collaboration with IBM, due to the lack of a centralised email service, the hospital administration was forced to execute their daily work tasks using personal mail IDs. Using IBM iNotes' via Cloud, Narayana Health is able to improve productivity and streamline the process of keeping record of salary slips for over 13,000 employees instead of providing pay slips manually.

    “We are pleased to work with IBM in helping upgrade our IT Infrastructure and addressing our business needs,” said Srikanth Raman, Group Head Information Technology, Narayana Health

    “Cloud computing has redefined the way businesses function today. Our solutions are customised depending on an organisation’s business needs and can address all key business imperatives. We are committed to providing the best in class Enterprise Cloud Services to clients in order to redesign their IT infrastructure to ensure efficiency and business productivity,” said Anmol Nautiyal, director, IBM Social Business & IBM Smarter Workforce.

    Currently, IBM has 100+ cloud SaaS solutions. Since 2007, it  invested over  $7 billion in 17 acquisitions to accelerate its cloud initiatives and build a high value cloud portfolio. It  holds 1,560 cloud patents focussed on driving innovation.


    ImageWare Systems, Inc. (IWSY) CEO Jim Miller on Q3 2018 Results - Earnings Call Transcript | killexams.com real questions and Pass4sure dumps

    ImageWare Systems, Inc. (OTCQB:IWSY) Q3 2018 Earnings Conference Call November 14, 2018 4:30 PM ET

    Executives

    Jim Miller - Chairman & CEO

    Wayne Wetherell - CFO

    Analysts

    Harvey Kohn - HRK Strategic Advisory

    Jeffrey Link - Invemed

    Operator

    Thank you and good afternoon everyone. Thank you for participating in ImageWare Systems Third Quarter Financial Results and Corporate Update Call to highlight the company's progress since its last quarterly update in August.

    Joining us today are ImageWare Systems Chairman and CEO, Jim Miller; and the company's CFO, Wayne Wetherell. Following the remarks, we'll open the call for questions.

    Any statements made on this call that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as anticipate, believe, estimate, expect, forecast, intent, may, plan, project, predict, if, should, and will, and similar expressions as they relate to ImageWare Systems Incorporated are intended to identify such forward-looking statements.

    ImageWare may from time to time, publicly update these forward-looking statements, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will, in fact, occur. These projections are subject to change and could differ materially from final reported results.

    For discussion of such risks and uncertainties, please see Risk Factors in the ImageWare's Annual Report on Form 10-K for the fiscal year ended December 31, 2017. Its quarterly report on Form 10-Q for the quarter ended September 30, 2018, and other reports filed with the Securities and Exchange Commission under the Securities through Exchange Act of 1934 as amended.

    Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of to-date on which they are made.

    I would like to remind everyone that this call will be available for replay starting at 7:30 p.m. Eastern time tonight. A webcast replay will be available for 90 days on the company's website at iwsinc.com. Any redistribution, retransmission, or rebroadcast of this call in any way without the expressed written consent of ImageWare Systems Incorporated is strictly prohibited.

    I'll now turn the call over to Wayne Wetherell, CFO. Please go ahead.

    Wayne Wetherell

    Thank you, operator, and welcome to those of you joining our call today.

    Our quarterly financial results are available in the recently published news release and on the Form 10-Q. The context on today's call, I'll provide a brief summary of those results.

    Revenue for the third quarter of 2018 totaled $736,000, that's down 32% from $1.1 million for the same quarter of 2017. The decrease was attributable to lower identification project related revenue of approximately $271,000 and lower royalty revenue of approximately $63,000.

    As we stay in the past, our government revenue is subject to significant swings due to the nature of the government project business. Gross profit for the quarter was $576,000 as compared to $853,000 in the same quarter of 2017. Gross margins decreased a 78% in the third quarter compared to 79% in 2017.

    The third quarter net loss was $3.5 million compared to $2.4 million for the same quarter in 2017. Net loss per share for the quarter was $0.04 compared to $0.03 in 2017. We ended the quarter with cash of $9.1 million. This concludes my financial review, I'll now turn the call over to Jim for the progress update on our business strategy.

    Jim Miller

    Thanks, Wayne. Good afternoon to everybody. And I appreciate the opportunity to speak with you all today and provide you an update on our marketing and sales efforts as well as those of our partners. But first, for those of you who'd like to know more about our biometric technology and learn about what our game-changing patented multi-factor, multimodal technology does and how it's different from and superior to other competing technologies and why it's needed. I invite you to either visit our website at iwsinc.com or contact our IR team directly to discuss.

    I'll begin with an update on projects previously discussed before I address new opportunities that have come to us since our last call. It's important to keep in mind that updates and expectations regarding our partner projects come to you by way of what information and expectations our partners provide to us.

    Our partners tell us what they expect at any given time in the life of a project and in the interest of transparency. We share that information where we can with our shareholders. Unfortunately, in some cases, they've been off on their timing. Much of that is understandable as there are numerous moving parts in several layers of management in any purchasing decision particularly one involving new technology.

    Regrettably, when they are off it leaves the IWS management team looking [that] as well as if we missed the mark. That said, we continue to believe in the partner model as given our size and number of employees, it's the best way to approach global markets.

    Now on our August conference call, we discussed the award granted by the veteran's administration to our partner Four Points were $3.6 million multiyear order for services and licenses in connection with the biometric authentication system deployed by the VA. We continue our service to the VA, one of our largest and longest customers while we discuss their needs for additional licenses and growth of the system.

    By way of our partnership with Fujitsu, we’ve received an order from a Canadian financial institution for our GoVerifyID product. Since the completion of the agreement, we have begun the install process which will lead to the enrollment of identities in the biometric authentication system in December.

    Updating you on the pending Fujitsu service now helped us product as mentioned before we are comfortable for this is an extremely large piece of business with the base in the 100s of millions of potential customers. In order to ready the Fujitsu branded services now product for the market, the product must be tested and certified.

    This is a rigorous process that runs the new product through its paces and certifies that it meets standards for sale and will be interoperable with a large number of other software products used by the customers. When that work is satisfactorily completed and retested, there will be a product announcement and Fujitsu will begin offering service with our embedded GoVerifyID technology.

    Thus offering a smoother and more secure user helpdesk experience at a meaningfully discounted price to the customer. We are advised at this sales effort will start in this quarter. Our partner, CDW, tells us it'd expect to complete several new GoVerifyID additional sales in this quarter as well.

    Our work continues with one of IBMs largest ISAM customers, last quarter we told you that we'd advanced to the procurement discussion stage and for the moment, that is where that discussion remains. More recently, ForgeRock, a leader in identity and access management and ImageWare announced the partnership that involved the integration of our GoVerifyID product which allows for both two and three-factor authentication into the ForgeRock identity management platform.

    At a major industry event, Identity Live, just two weeks ago in London, ForgeRock debuted our product fully integrated into their identity management platform which allows their customers to quickly and easily obtain the security advantages of additional authentication. We in ForgeRock are now working together to follow-up on the significant interest from that event as well as target specific ForgeRock customers with two and three-factor authentication needs.

    Now, some of you have wondered why it is that a longtime pioneer in biometrics is now offering the frankly lesser security of two-factor authentication. Simple reasons, first we've always offered two-factor authentication on our products, so why not make sure all of our customers know this.

    Second, some customers are hesitant to jump right into biometrics, after all it's a big change from over 50-years of passwords and pins. So, two-factor authentication offers an easy first step into the journey towards more secure authentication of your identity and with the IWS platform we can start a customer on two-factor authentication or 2FA as we call it and graduate them to full biometric authentication in one very easy step and all on the same platform.

    Finally, and bluntly, we all saw the $2 billion plus valuation given to a two-factor company in recent acquisition by Cisco. We however, can take our customer on this authentication journey by supplying first steps with the ability to seamlessly and effortlessly upgrade to full biometric authentication.

    Because we have all these capabilities on the IWS platform, a customer can move from two-factor to full biometrics with a literal flip of the switch, a capability not provided by anyone else in the market. And two, and two or three-factor, the customer gets the same highly scalable authentication enjoyed for a number of years by our government customers such as the state of Arizona, the Canadian TSA and the VA.

    Turning to the burgeoning healthcare market which is expected to support a higher per person per month price point at the end of our first quarter Fujitsu announced that it had expanded our sales and marketing agreement and was bringing their MedClick platform into the market. MedClick is an OEM version of our FDA approved pillphone product for biometrically secured patient engagement, medical adherence, and authentication of e-prescription ordering and clinical trial.

    In Q2, we told you that we and Fujitsu had successfully integrated MedClick into the Epic electronic healthcare application. The Epic electronic record solution for healthcare provides records for over 200 million patients. So, we're very excited about the ability to market MedClick into this space. In Q2, we also told you that Fujitsu had just commenced its marketing and sales activities to add resellers who will target the chronic disease management markets with the product.

    The Q3 update is that we are told that MedClick is being well received. Fujitsu is working on securing a reference customer for the product and is having discussions, senior management types in various companies to secure that vital reference account which can then be used to drive additional sales.

    Turning to our partners at Contactable, we have executed a 5-year license agreement with them and tomorrow you will see an announcement about our new product for on-boarding which is based on our agreement with them. This is not only fills a hole in our product offering but opens up a very lucrative market segment for our product. As many companies desire identity verification prior to enrolling in identity into a consumer or enterprise database.

    Now, with this new product, we can offer confident assurance that the individual who enters our customers database has their identity validated against the government issued ID. We could also offer customers the service of a digital vault to biometrically protect important documents and to facilitate digital transaction, all of this seamlessly integrated into our GoVerifyID product.

    More importantly, we can create for all users a secured digital identity that is compliant with the new GDPR requirements, compliant with new banking requirements and allows the individual who created that fully invented identity to use it in a federated fashion. That is, with other merchants, governments or service providers or and this is really important: remove that identity from use all together by revoking its use.

    This identity can be created face-to-face in a brick & mortar location or done mobile'ly via use of a smart device. We are already engaged in several exciting discussions about its use and you will be hearing a lot more from us about this exciting new product. In our last call, we also talked about a new market. The internet of things. Defined as a group of standalone devices controlled or monitored from a remote location, which market is larger than any of the individual markets we have been selling into.

    We are at work with several companies in this space ForgeRock among them and here we're also completing an exciting new product that will work to add biometric and device authentication in the IoT space. You'd be seeing a lot more from us on that in the coming weeks. As you saw from our public announcements, we were awarded a $2.7 million agreement from IBM Canada for software that will be used for building the next generation identity management system for the Canadian government.

    Work has started on that project and there will be revenues in this quarter. We're also pleased that IBM has asked us to consider other opportunities where we can sell in market other IWS products alongside of them as well. Some of you may have seen recently an announcement from Fujitsu and Microsoft regarding their agreement that Microsoft will resell Fujitsu software as a service products on the Azure Cloud platform.

    And going forward, the plan is to include biometrics as a service in that group. Microsoft has not historically offered a cloud-based biometric authentication product or service. So, it's very promising that they plan to be selling Fujitsu's Software as a service solution. We continue to create new technology and improve our existing technology. As we do, we continue to file new patents around our new innovations.

    Most recently, we have created new and exciting advances in two-factor authentication which will be -- we will be introducing early next year and for which we have patent applications in the works. We have altered our marketing approach to the market by more graphically showing potential customers how we can supply both two and three-factor authentication seamlessly on the same platform. So, when a customer wants an upgrade, they can go from two to three-factor with absolute ease.

    Many of you've seen the recent Duo sale for $2.3 billion to Cisco based solely on a two-factor business model. So, we think our strategy --. For the Fujitsu Forum event held last week in Munich, Germany, Fujitsu integrated our biometric technology into their blockchain product. Our R&D folks have come up with a great new way to more efficiently use biometrics in the blockchain arena and we filed a new patent on this new technology.

    Also demonstrated the use of our technology in the smart-car application at that show, so you can see how biometrics can operate to supply security in that space. Finally, we're pleased to tell you that the state of Arizona has recently awarded ImageWare a multi-year indefinite delivery, indefinite quantity contract for the supply of biometric authentication capability to all of the state agency.

    As many of you know, Arizona was our initial customer many years ago and we're very proud to be able to offer our products and services to additional agencies over and above our traditional focus in public safety agencies. A list of active potential customers continues to grow and a list to potential significant transactions is also growing but as I'm sure you all recognized, the entire process is not as simple as flipping-on a light switch and as we've all seen, the process takes time.

    Every project that we have been and will work on, progresses at its own space but it is progressing. In fact, things are significantly different in the last nine months. Prior to that time, we were attempting to make in road and sales the three major customers ourselves. We recognize several years ago that attempting to sell directly was not meeting with any success. So, we changed direction to instead of tracks and major companies to be our partner and salesforce space.

    And after several years of effort, that was successful with Fujitsu, IBM, CDW, now ForgeRock and others. For about the past nine months, these companies have been our sales front and we are now seeing a totally different reaction at a higher level by potential customers. Our partners have had some early successes. They and we see major successes developing, significant strides have been made to establish a pipeline that they believe will impact, bring home major revenue for them, and for us.

    As said before, it's important for me to remind all of you that the process we take with each and every partner is unique to that specific partner. Each partner has its own set of objectives, market forces and processes that need to be navigated internally prior to ever going to market. Sometimes these processes especially those that involved very large companies move at a glacial pace. But I remind you they are all in fact morning and moving towards very large markets.

    I would also like to note that throughout the year to-date, we've increased our sales with partners. At the end of the last few months, we've closed 11 new deals for our GoVerifyID product in addition to significant new orders for Cloud ID and law enforcement products. The fact that the end of nine months, we closed the total of 12 new deals for GoVerify and four for Cloud ID in the biometric engine.

    For perspective view, may recall that GoVerifyID orders were zero, starting in Q1. So, progress is being made, in fact over 60% of all of our orders for the first three quarters are new business deals.

    Now, I'd like to turn our call over to our operator to begin the question and answer session.

    Question-and-Answer Session

    Operator

    Thank you. [Operator Instructions] Our first question comes from Paul Penney of Northland Security.

    Unidentified Analyst

    Good afternoon. This is Greg on for Paul. Thanks for taking my questions. First, can you provide some color on the $4.5 million in orders that you were seeing and maybe like cadence on when that will be recognized as revenue?

    Wayne Wetherell

    Yes, there is. Hi Greg, thanks for the question. Yes, we were obviously pleased that it was the number like $4.5 million and that's a good month or a good quarter for order intake for us. Some of those things weren’t were mixed. They were licenses for immediate delivery, so you can recognize revenue at the time that those products are delivered. Others were longer-term government contracts where we had actually initially thought that we might see some immediate license revenue and those in the final negotiations that the contract got moved to a more extended development process, our delivery process I mean to say.

    So, we have revenue that on those moved in from the third quarter because in the case of the Canada CSA, the deal was signed late in the quarter which moved the revenue that's just be starting to recognize in Q4. The other, where various GoVerifyID projects that we have out as I said in my remarks, we have 12 GoVerifyID deals that we have done. So, we're out selling the product. It moves at various stages, folks move to implement differently.

    Good example is the Canadian financial institution I mentioned, that deal was signed a few months back but they just now green-lighted the implementation. So, the revenue expectations on our side slip because the customers' saying we have an agreement, in some of these cases they've even paid an advance for the licenses but the fact is we haven’t made the delivery yet because the customers not ready to accept. And that's as I said, hence my comment, every one of these is a little bit different in the way that the customer and we have to navigate.

    And sometimes when a customer's not ready to take delivery, even though we're very ready to deliver, you can't do anything but obviously see to their wishes in terms of the delivery schedule. So, it's a mix of government orders from more traditional products and happily in that mix is also a number of GoVerifyID and newer products orders as well.

    Unidentified Analyst

    Great, that's a lot of good color, thanks for that. Again secondarily, can you provide an update on Mexico opportunities that you're seeing given the on-deck biometrics managing?

    Jim Miller

    Yes. There is a number of activities that are ongoing currently in Mexico. You were referring for all the rest of our listeners to a federal law in Mexico that is mandating additional security and privacy protections and one of the ways that you can attain compliance with that law is by using technology such as biometrics.

    So, we and particularly through our partners at Fujitsu have a number of banks located in Mexico and opportunities in that country that were rapidly trying to get to closure. There is a need for the product, negotiations are never easy, if any kind a lot of paperwork involved in dealing with institutions like financial institutions. But there is I think some reason for optimism that there will be some deals there.

    A lot of the Mexican banks had available fingerprint technology that they could utilize as an initial step towards getting compliance with this law. But there were also a handful of them, decent sized good banks in terms of size that had not availed themselves of that. So, that's really the opportunity there is to be able to offer those folks the ability to come into compliance in time for the end of February 2019 deadline. So, we are as I said we're hot on the trail there on right in the middle of those discussions.

    Unidentified Analyst

    Got it. And then, it was great to see the addition of the sales office in Japan back in July I believe. Can you maybe give us an update on progress with Fujitsu following those like personal changes and the addition there?

    Jim Miller

    Yes. It has been a tremendous thing to have representation in Japan; the gentlemen that handles that for us, a veteran Japanese, fluent Japanese speaking sales executive with a lot of experience in Asia Pacific and particularly in the Japan market. So, we not only have someone that has spent their careers selling in that market successfully but also a fluent native speaker which is a tremendous help. Not just in Japan in day-to-day sales activities but as we need as we have periodically with Fujitsu executives from Japan.

    It's always very helpful to be able to speak in someone's native language and be understood. So, that’s been terrific. And in part of his responsibility is to shepherd this global agreement that we've had under discussion with Fujitsu for some time and we continue to make progress on that although it's been slow. Fujitsu's had a few reorganizations, they've had one very recently. So, sometimes that causes you as I said in my remarks it's a process and you just have to navigate it no matter how frustrating it might be and believe me some days it is.

    But new people come in and they need to get up the speed. That's just part of all of our lives, things change, we need to adapt. But it's I think going very well. In addition to that though, not just with in terms of Fujitsu, we are making I think really good progress with our new partner at Two-Five who we also announced, in going into some additional opportunities with companies like Hitachi for example which is an existing customer of Two-Five.

    So, we're -- it's still a little bit early in the process but really happy with the progress that we're seeing there and there are some just some really exciting opportunities as we start to move out to add companies that get them acquainted with our abilities and capabilities in addition to Fujitsu, larger companies as well who have access to that market. So, pretty happy with actually where it is and things that -- we'll be seeing some dividends in terms of revenues here pretty soon on that.

    Unidentified Analyst

    Yes, that's really good to hear. I guess one last one from me and maybe it is a little early still but regarding the in the new IBM, I mean in Canada, with these are you [going to] see opportunity for more expansion with IBM following the recent help that you gave in on the government contract win?

    Jim Miller

    Yes, I do. I'm optimistic. I think we all are optimistic. The history of our involvement on the Canadian project was through another contractor. Originally, years ago when we built that system for the government, and ImageWare did build the system from scratch for the government there. The integrator was Unisys and when the government switched integrators we came to work with IBM in Canada. But we had never started a project together and so when this one went to rebid, it was just a fabulous opportunity frankly for us to not only get better acquainted with them because people have changed chairs over the years as you would imagine but also a great opportunity I think for us and for them to get better acquainted with what we do.

    There's a tendency I think when you're just working on one project, I think maybe that's all the other person actually can do. And I think we were able to show that we’ve got a pretty wide variety of products that would be applicable in other used cases in the IBM world. So, we have started those conversations about ways that the companies can work together and leverage each other’s strengths, IBM’s of course is considerable and, yes I do, I'm optimistic that we'll see some results from that. There's interest on both sides. So, it's a great place to start.

    Unidentified Analyst

    Okay, great, thank you.

    Operator

    Our next question comes from Harvey Kohn of HRK Strategic Advisory.

    Harvey Kohn

    Hello Jim, hello Wayne.

    Jim Miller

    Hi, Harvey.

    Harvey Kohn

    Couple of my questions have already been answered. Just as a general comment where you've been going on. It's pretty clear from the first quarter of this year that we've made tremendous progress in expanding our pipeline of all partners and actual end users which I think something we've all would waiting for because this is the first time that these customers will act as a major base, a major reference point for expanding multiples going forward.

    So, it looks like right at the inclination point of major salesman up to that, congratulations. Having said that, I wonder if two things, I wonder if you could comment on the departure of Jason Bradley and something you could talk about.

    And secondly, I would -- if you would go back over, what sounds to me like a huge opportunity, the new ID product that you have --

    Jim Miller

    Okay, thank you, two good questions. Jason Bradley was the senior executive in Fujitsu, in the group that we worked with here in the Americas. He has decided to end his service at Fujitsu and take up with a new exciting company in the IoT space. That announcement's been made at Fujitsu. So, that's out there and that transition is now concluded.

    There is no denying that we'll miss Jason's advocacy. He was a savvy executive who was in a hurry and he was a true visionary who believed in the future of biometrics sold as a service for authentication in both the enterprise and consumer markets. And he believed in the ImageWare approach to that as having been groundbreaking. And mind you, he sort of inherited our portfolio. He was not the original executive who we did the deal with in the Americas.

    That said, we will miss him of course for lots of reasons but Fujitsu did not get to be a $45 billion $50 billion global powerhouse of the company with only one person to rely on. And so, like all good companies who have been in business for 50, 60, 70 years and prospered. There is a deep bench, we are in the process of moving to a new group whose purpose will be to specifically sell cloud service product which we think is terrific. And we're excited by that.

    So, always tough to lose a valued partner and a very smart guy. But life will go on and so were we. And I do not think that our partnership with Fujitsu will suffer. I think that in fact we will be now seeing the expansion of it, as we do some things like for example putting in blockchain; putting our biometrics into the Fujitsu blockchain product; and a good safe way to what you asked secondarily and that's our new product.

    We are as a world going through an amazing digital transformation and so tomorrow we will announce the new product that will be indeed aptly call the digital identity transformation platform. That's a mouthful really it'll just integrate with GoVerifyID. But the whole ideas is here that we're finding that as you go along and you present your biometric product, people want to know before they put your biometrics in the system that you're really you.

    Because think about it, if we get the wrong person, we get a fraudster in the system, pretending to be someone else and therefore the biometrics go in, you have kind of poisoned the system at the get go. So, there has a reason in need to be able to take precaution at the outset and by the way this is applicable for enterprise or consumer in a very big way and that, that person against the government ID.

    And there are a couple of products out there who have done similar things but this one is different because in addition to just wearing your government ID prior to entering the database, there are additional features to this product such as digital vault, which will allow you to facilitate digital transaction. So, I can sign documents, store them in the vault, authenticate my identity biometrically for access to those documents or proof that I'm actually the person signing.

    This is a major step toward this digital revolution that's going on, that can create a secure identity and have that identity be used. We've talked in the past about federated identities, the ability to use that identity across multiple different tenants or vendors, this is the key first step to creating a valid identity that you can rely on. And if I'm going to use my identity in a variety of different places, then it should better be validated embedded up front.

    And then more importantly on the other thing the product does, it allows you by the way it's compliant with GDPR which is the European privacy regulations and for those of you on the call, I think that you may probably already appreciate that while GDPR is a European regulation, it applies to anybody doing business or touching any business that's done or transacted in the European Union countries. And so, that virtually ends up being all of us because it's a global world.

    The ability to create an identity and give the person who's identity it is actually controlled. So, there is a mechanism where you can revoke the right to user digital identity and that's a big deal by itself because I think that we've all seen our information and our identities are used without our permission way too much mostly for fraudulent purposes. So, there has been a lot of excitement around this product. Our partners at Contactable already have had success in their markets with it.

    We are really excited to have it. And as I said, I think you'll be hearing some really good things about this in the next few weeks. It fills the hole in the portfolio. It's the frontend to enrolling people in the database. So, it's great to have it and I think when you see it out and about we'll have it on the website. You could take a look at how it works. It's a truly exciting product to have. And again, seamlessly integrated with the rest of our biometric authentication on the GoVerifyID platform. So, it's a big step for us and I think it is going to have a lot of play in the marketplace.

    Harvey Kohn

    Sounds exciting, thank you.

    Jim Miller

    You bet.

    Operator

    Our next question comes from Jeffrey Link of Invemed.

    Jeffrey Link

    Yes, hi.

    Jim Miller

    Hi.

    Jeffrey Link

    I wanted to, I don’t know if you can clarify or not. I think you said you have now 12 GoVerifyID deals in the works at various stages?

    Jim Miller

    Yes.

    Jeffrey Link

    How many of those deals are in the $4.5 million. So, you have 12 or four of them, eight, 10, how many are in the $4.5 million that you say is in the pipeline now?

    Jim Miller

    I think between in the last quarter there was one new deal added. I believe the number was 11 through Q2, it's 12 through Q3 and we anticipate several more here in this fourth quarter.

    Jeffrey Link

    Well, I guess what I'm trying to understand is are they all part of the $4.5 million?

    Jim Miller

    No. the $4.5 million were the orders that were received in the third quarter.

    Jeffrey Link

    I See.

    Jim Miller

    Those are as I said to the first question that -- those are at the various mix of products, some for government products, some for GoVerifyID related products, other services and things that we do. But that was, those are all new business in the third quarter.

    Jeffrey Link

    So, then the 12 deals that you have or the customers or the various stages -- what kind of expectation can one look for in terms of revenue over the next 12 months from these deals?

    Jim Miller

    Well, it's a little bit difficult to be precise on that because what happens is that, that various different for buyers of the product take it on and they take it on to frankly tried out. So, they might be a small enterprise with a couple of 100 employees and they will take 20 or 40 or 50 to try it. And if they like it they'll expand it. We've seen one instance we're here in the fourth quarter that at a prior order was supplemented by an additional order.

    So, that's just its building blocks you start and as I that's why I point out that every one of these people are different. It's new technology, so we -- they don’t have a really good road map to tell you how it's going to roll out, what's the timeframe and how it's going to end up. But the first step is of course is to get them to purchase it. And then we're confident that as you use the product you'll like it and you'll add your employees and as you add your employees, you will then think about moving it to your customers, which of course is the bigger number that we're after here. But that's the way that this thing sort of starts out.

    Jeffrey Link

    All right. I wanted to also ask if you would, since I'm a little newer to the story. On the service now deal that's been talked about on-and-off, what exactly is the status right now in terms of whether the software is ready to go, what -- where are you at in this whole process?

    Jim Miller

    We actually of course are in a secondary role, to be honest with you. Because the product is a white label of the service now product that is sold by Fujitsu. So, it's Fujitsu that drives this process. They have advised us that they're in the final stages of receiving that certification and that they anticipate having all of that concluded and moving ahead to their sales effort in this quarter. So, that's what they’ve reported to us.

    Jeffrey Link

    And when we talk about 100s of millions of potential users, can you elaborate a little bit on what that exactly means if service now is servicing a 100 accounts that is a 100s of millions of users is Fujitsu now needing to go and sell it to each of these accounts or is service now simply going to begin to roll out the software to these accounts and automatically going to get upgraded to the white label software that Fujitsu has, I guess I'm just trying to understand the actual process here, once I guess the certification is completed.

    Jim Miller

    Fujitsu has its own customer base. Fujitsu, lots of folks don’t appreciate, operates a lot of call center or a lot of support work. So, they have an existing book of business in the support services arena already. The plan is to offer the product that would allow folks to use a biometric authentication to get directly to a help desk professional who can bring their record up on the screen because we vetted you, we know it’s you. We can dispense with qualifying questions.

    Mother's maiden name, social security number, all those things we all go through when we call the helpdesk and get right to why it is you called. That ability to do that, time is money in that business simply put and the ability to do that saves a lot of time. And therefore saves a lot of money. And that's the value proposition.

    So, the plan is that once the product is certified, it will then go out for sale to Fujitsu's existing customers. So, the answer to your question in the Fujitsu’s case now, they don’t have to go knock on doors and call out. They already have a book of business. So, that's the way they all -- market.

    Jeffrey Link

    And so, these customers are currently using a Fujitsu software that may already have the two-step process and now they would upgrade to yours?

    Jim Miller

    Well, they would upgrade to a Fujitsu product that includes ours. Yes, that's right, they're using the traditional software product that we all experience when we call the helpdesk. That is you have to go through a list of qualifying questions before they'll answer why it is you called. So, we're cutting out that step, we're doing it giving them the assurance that it's really you that's calling, not me pretending to be you. And that process saves as I said a good deal of time and money. It also increases enhances the user experience, which is not a bad thing either.

    Jeffrey Link

    And if you would, how do the service now fit in with Fujitsu and all these call centers?

    Jim Miller

    Which there it is a Fujitsu has a product which is itself a private or white labeled product of a service now product. So, in the same way that Fujitsu rebrands products like of ours, they have a similar arrangement with a larger company ServiceNow.

    Jeffrey Link

    Okay. And I'm going to ask you I guess a similar questioning on the Epic, win that you recently had in the incorporation of your module into the Epic system. What is -- where we add in terms of that roll out?

    Jim Miller

    Well, let me just look clarify part of your question there. I would not say that that's so much of a win as it is a milestone. That is the integration into the Epic backend system. That's really important because it's really difficult in any space to go in and sell a single product that operates as a standalone. And any institutional sale and even in our own homes, you've got a lot of individual applications running.

    You really like it when they run on one network and you only have one system to navigate and you don’t have to worry about having all these different silhouette systems that you have to service, understand each one of the interest is and work with that. So, this puts it on a platform that not badly, is used by several 100 million people in the North American market, in the world market that they get their health are records on.

    So, it's good to be there because that makes the sale easier. We tried, believe me to sell it as a standalone and we were met with a lot of resistance because people wanted to see it on one of the major healthcare record software systems that they employ. Right now, where we're at with all that is that the larger companies understand Fujitsu and Epic understand the value of a reference account. That is a higher profile company that you can point to in the sales process, where you can say this company uses our system.

    They have purchased it, they use it, they like it. And that answers a lot of questions in your sales effort. Because one of the ones you always get is tell me where you've done this and maybe even can I call that person. And I see how this really works, I know how you as a sales person tells me it works. But can I have a third party verification of what you told me. So, that is a critical, there's no price you can put on that reference. We can tell you that from our own experience and this is it's an obvious thing.

    So, that's what they're trying to do at this point and they're in that process. They've made a lot of progress but at this point I can report to you that they've had a success there, although they think they are closing in on some companies that will have will take it and adopt it and be that reference account.

    Jeffrey Link

    Just a follow-up on that. Do you need to be involved in that process when Epic is going out to these potentially referenceable accounts or they at this point enough understanding, enough of your software and its capabilities that you don’t need to continue to support Epic. I guess, I'm just wondering how you can stay in front of Epic to make sure that this product is in fact constantly being marketed by the Epic people?

    Jim Miller

    Well, it's we call that, it's a Fujitsu product. So, its Fujitsu not Epic that really leads the effort here because MedClick is our pillphone product that is white labeled by Fujitsu and therefore they lead the sales effort.

    And the answer to your questions is, right now in this fairly early stages, it depends. It depends on how much technical deep dive company wants to get into, in which case we will supplement our partner’s sales efforts. That's not true in every case. So they're, as they go along, you learned to you crawl and then you walk and then you can run, it's that very similar process as they get more time with the product, they wean away from having us to be there on every single sales call.

    But in the early going out to be quite honestly we sort of want to be there. We know the product, we built it better than anyone. And rather than leave a question on the table, we would air on the side of caution and be there to answer those questions. So, prospective customer gets the full understanding of the product and its features set and what it does. As time goes on, less and less, so that in some of the cases for other products like the GoVerifyID product, sales calls go on all the time where we are not involved.

    If we need to be, we're obviously there to support whenever we need to be. And then so that's pretty much how it works. So, it's just a question of getting them up to speed and then and to your point getting regular reports on how they're doing. And to gauge what we need to do or change to make sure that that effort can be more successful.

    Operator

    This concludes the question and answer session. I would like to turn the conference back over to Mr. Miller for any closing remarks.

    Jim Miller

    Thank you, operator. Let me first of all thank you for your continued support even as progress seems to take forever. While it's difficult for team here at IWS as well, we remain confident because we have the advantage of seeing what's going on out there in our market with our potential customers and because we know that we have the best technology addressing a huge and growing market and because we have significant partners who are confident that they will bring home the sales.

    I'll close now with that. I'll thank you again for your attention and your continued belief in our technology in our markets. And we very much look forward to speaking with you on our next call. Good afternoon, to everyone.

    Operator

    This concludes today's conference call. You may disconnect your lines. Thank you, for participating and have a pleasant day.

    SeekingAlpha

    A Neglected Partner in Asia: The U.S. Should Strengthen Economic Cooperation with Taiwan | killexams.com real questions and Pass4sure dumps

    Taiwan has historically been a beacon for economic growth and economic freedom in the Asia–Pacific. However, with China’s steady rise as an economic powerhouse, Beijing’s ability to influence not just the Taiwanese, but other countries’ relationships with Taiwan, has become increasingly worrisome and a drag on the market forces that should determine Taiwan’s place in the global economy.REF Taiwan is often left out as other countries sign new trade agreements. In addition to this long-developing problem, companies in Taiwan now risk being caught in the middle of an escalating trade dispute between Washington and Beijing.

    The U.S. can no longer stand by, idly watching these dynamics play out. Nor can it allow Taiwan and American businesses in Taiwan to suffer unnecessary economic penalties aimed at China. Given the uncertainty of supply chains created by ongoing trade disputes, it is necessary for businesses and consumers to know that the U.S. has reliable trade and investment partners in Asia. Reinvesting in the economic relationship between the U.S. and Taiwan will defray some of China’s non-market-based influence.

    To this end, the White House should establish a new high-level economic dialogue with Taipei that will push past trade conflicts and other political obstacles to a more meaningful partnership that will benefit both countries.REF

    Outcast from the Trading World

    In October 2018, the Australian government reportedly backed away from talks on a free trade agreement (FTA) with Taiwan, its 14th-largest trading partner, due to pressure from Beijing—Australia’s number 1 trading partner.REF To complicate matters, Australia has had an FTA with China since 2015.REF Despite growing skepticism of Chinese influence, Australia’s recent withdrawal from an FTA with Taiwan is a reminder of Beijing’s interest in managing other countries’ relationships with Taiwan.

    Beijing’s influence reaches beyond government relations. Over the past few years, the Chinese government launched a campaign of sorts to force international private businesses, including some businesses with foreign-government affiliations, to change how they describe Taiwan. Airlines, such as Delta, Air Canada, and Air India; clothing lines like the Gap and Zara; and others companies, such as Audi and Marriot, were forced to change company documents and products to be more in-line with Beijing’s view of Taiwan.REF In some cases, they apologized for not already conforming to Beijing’s wishes.

    Much like Chinese policies, Beijing’s efforts are slow moving. Taiwan is far from being completely isolated from the global economy. As a member of the World Trade Organization (WTO), Taiwan is able to take advantage of the “most favored nation” status and lower barriers to trade among members. Taiwan can also take part in the WTO’s dispute-settlement system, allowing Taiwan to challenge other countries’ illiberal trade practices. However, outside the WTO, as seen with Australia, countries that have diplomatic relations with China, except Singapore and New Zealand, have been reluctant to sign separate trade deals with Taiwan.

    Another recent example is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which will soon take effect. The trade agreement has already been ratified by six of its 11 signatories—Australia, Canada, Japan, Mexico, New Zealand, and Singapore. It will be one of the world’s largest trade agreements, accounting for roughly 13.5 percent of the world’s total economy.REF While some countries are still trying to persuade the U.S. to join since President Trump withdrew the U.S. from the trading block in 2017, Taiwan has had difficulties joining on its own.REF Taiwan very much wants to join the CPTPP.REF However, CPTPP members have been reluctant to support Taiwan’s ascension and risk angering Beijing.REF

    Ironically, many of the CPTPP members see the deal as a good chance to counter markets where there has been government interference—such as in the industries in which China’s larger state-owned enterprises (SOEs) are heavily invested. However, a flaw of the CPTPP is its lack of a comprehensive effort to address SOE privatization and ensure fair competition between SOEs and private companies. Other analysts see the CPTPP as a chance to compete with the Regional Comprehensive Economic Partnership (RCEP)—a separate trade block that is commonly cited as being a Chinese-led trade deal (despite it actually being ASEAN-led), and is another deal that Taiwan has little chance of joining.

    As other countries in the Asia–Pacific continue to sign new trade deals, these lower tariffs and reductions in non-tariff barriers give them a competitive edge over countries, including WTO members, that are not a part of the deal and continue to maintain higher barriers. Taiwanese manufacturers are worried about the losses they face from the new deals being made by regional competitors in South Korea and Japan.REF Free trade deals can also give confidence to cross-border investors. While these other countries economically unravel their dependence on China, Taiwan’s economy has increasingly become more dependent on China.REF

    Taiwan’s Economic Dependence on China

    Beijing is increasingly trying to win the heart—and wallets—of the Taiwanese. Over the past 15 years, Taiwan’s economy has increasingly become more dependent on trade with, and investment in, China. In 2003, China overtook the U.S. as Taiwan’s largest trading partner. Taiwan now trades twice as much a year with China than it does with the United States. Taiwan’s total trade with China was $139 billion in 2017. Trade with China now makes up almost 25 percent of all of Taiwan’s total trade.

    BG3365 Chart 1

    Taiwan, like many other developed market economies in the Asia–Pacific region, is desperate to find new areas of growth. For many countries, both developed and developing, that growth has increasingly been found in China. Taiwan invests as much in China as it does in all other countries combined. Chinese investment in Taiwan has significantly increased over the past decade as well, albeit from a low base. Chinese investment in Taiwan in 2017 was above $265 million, compared to just $37 million in 2009.

    BG3365 Chart 2

    In 2010, Beijing and Taipei signed a trade deal to reduce tariff and non-tariff barriers, known as the Economic Cooperation Framework Agreement. However, Taipei questioned Beijing’s true intent, there were concerns about the deal’s sustainability and transparency, and later because of a breakdown in contact between the two sides, besides substantial “early harvest” provisions benefiting trade in goods and a few other details, the deal never went into full effect. A refusal by Taipei to sign oversight legislation left the deal only partly fulfilled.

    In 2018, Beijing began a new approach. The Taiwan Affairs Office in China’s State Council initiated a program commonly referred to as “31 measures.”REF The program is billed as a way to increase economic and cultural exchanges between “compatriots” across the straits. On the surface, these measures range from encouraging economic cooperation as well as social cohesion. Measures include easing investment barriers and offering benefits for the families of those who wish to work in China. For example, Taiwan-funded enterprises are granted land use in the same way as mainland enterprises. Taiwanese citizens are also eligible for various cultural awards and honors.

    But underneath the surface, it is clear that Beijing is offering economic incentives in order to extend Taiwan’s economic dependence, gain influence in Taipei, and secure new technology. Xiamen, a city in Fujian province and right off the shores of Taiwan’s Kinmen Island, quickly followed suit by introducing a similarly structured “60 measures” program.REF Other provinces, such as Shandong, have followed suit as well. Taiwan’s Executive Yuan—the executive branch of Taiwan’s government—wary of these efforts, responded with its own program to attract and retain Taiwanese domestic investment.REF

    Given Taiwan’s place as a leader in advanced manufacturing, such as in its production of semiconductors, it is a prime target for Beijing’s “Made in China 2025” initiative as well.REF Beijing wants to become the world’s leader in advanced manufacturing. And it wants to lead the world in 10 unique sectors, including robotics, medical devices, transportation, and information technology. It is why one of the top initiatives of Beijing’s 31 measures is encouraging Taiwanese investment to help develop the Made in China 2025 policy.

    U.S.–Taiwan Economic Relations

    For the past 30 years, the U.S. and Taiwan have had a significant economic relationship through strong trade and investment. In 2017, the U.S. and Taiwan traded $87 billion worth of goods and services, making it America’s 12th-largest trading partner.

    BG3365 Chart 3

    Cross-border investment between the U.S. and Taiwan was more than $1 billion in 2017. Companies like Amazon, IBM, Microsoft, and Yahoo have plans to invest in artificial intelligence development in Taiwan.REF But the levels of bilateral investment are not reciprocal. Taiwanese companies invest almost four times as much in the U.S. as American companies invest in Taiwan. Taiwanese investment in the U.S. was $837 million in 2017. This trend will likely continue to increase over the next few years given an announcement by Taiwanese company Foxconn to invest $10 billion in production facilities in Wisconsin.REF

    The Taiwanese are investing in more than American production. Taiwan is the third-largest Asian investor in U.S. long-term securities. Taiwanese individuals have purchased over $576 billion in U.S. debt.REF Taiwan is also an increasingly significant licensor of U.S. intellectual property (IP). In 2016, U.S. companies made over $4.5 billion in IP revenue from Taiwan.

    BG3365 Chart 4

    Taiwan’s total trade and investment supports more than 322,000 American jobs, according to the Taipei Economic and Cultural Representative Office in the U.S.REF Taiwanese investment supports 107,000 American jobs and more than 215,000 jobs from U.S. exports of goods and services to Taiwan. These numbers do not include the thousands of jobs that are created and supported in America by the imports of goods and services from Taiwan—adding value to U.S. manufacturing and supply chains. The value of trade with Taiwan adds more than $30 billion worth of benefit to the goods and services consumed by Americans.

    There are still some barriers to trade and investment between the U.S. and Taiwan. While the U.S. has a Trade and Investment Framework Agreement (TIFA) with Taiwan to hash these issues out, the U.S. has not held TIFA talks with Taiwan since 2016.

    BG3365 Chart 5

    Yet since those last consultations in 2016, Taiwan has actually become more economically free than the U.S. The U.S. has a total economic freedom score of 75.7 out of 100, as measured by The Heritage Foundation’s Index of Economic Freedom. Over the past decade, the economic freedom of Taiwan has been increasing while the economic freedom in the U.S. has been decreasing. Today Taiwan has an overall score of 76.6 out of 100—placing it in the category of “mostly free.”REF Taiwan has strong property rights, limited government spending, and good business freedom. But it also has weak labor freedom, judicial effectiveness, and financial freedom.

    Taiwan’s individual scores for trade and investment freedoms are below those of the U.S. but are still relatively high. Already Taiwan’s average tariff rate of 6 percent is low compared to international standards.REF Non-agricultural tariffs average about 4 percent while agricultural tariffs average about 16 percent.

    The number of new tariffs the Trump Administration has put in place since 2017 constitute an assault on Americans’ freedom to trade. And Taiwan has found itself caught in the middle of a number of trade disputes that have arisen. Since the beginning of 2017, companies in Taiwan have been at risk of being subject to direct costs through the increase of tariffs on solar panels and steel. There are potential indirect costs, too, as companies respond to tariffs on Chinese imports to the U.S. Taiwan relies on a diverse global trading system, often benefiting from both U.S. innovation and Chinese manufacturing.

    Despite having to deal with the new cost of tariffs, Taiwan has a history of making procurement trips to the U.S. under self-initiated “buy American” trips, particularly for agricultural products. Just last year, a delegation signed deals to export up to $3 billion worth of U.S. corn, soybean, wheat, and other grain.REF Taiwan plans to increase its purchases of soybeans by a third until the end of 2019.REF While government-led procurement trips tend to have market-distorting effects, this meaningful gesture helps American soybean farmers, who have also been caught in the middle of a trade dispute between the White House and Beijing. American soybean farmers have lost both profit and market share in China, and Taiwanese investors have stepped up to support them.

    Establishing a U.S.–Taiwan Economic Dialogue

    Currently, the U.S. has an economic working group, a high-level economic dialogue, a free trade agreement, or intentions to enter into trade negotiations with any number of its economic partners in the Indo–Pacific, including Australia, Singapore, South Korea, and Japan. Since 1995, the TIFA has traditionally been a meeting of senior U.S. and Taiwanese government officials to discuss outstanding bilateral trade issues. The talks have recently been held at the Deputy Secretary level under the auspices of the American Institute in Taiwan—the unofficial instrument of America’s relationship with Taiwan.REF

    However, the U.S.–Taiwan TIFA talks have a history of being postponed over specific trade disputes. When the U.S. and Taiwan do meet next, the meeting would lack the authority to pursue larger, more comprehensive initiatives. This is why the White House needs to re-engage with Taiwan by establishing a new high-level economic dialogue much like the one between the U.S. and Japan that is capable of overriding political obstacles.

    A Framework. In early 2017, President Donald Trump and Japanese Prime Minister Shinzo Abe agreed to launch a new high-level economic dialogue.REF That year, the two sides reaffirmed the importance of deepening trade and investment opportunities, and pledged to explore ways to promote trade, economic growth, and higher industrial standards in the Asia–Pacific.

    Much like the dialogue with Japan, a U.S.–Taiwan economic dialogue would pursue mutually beneficial opportunities for economic growth and job creation. It would seek to abolish existing tariffs and non-tariff barriers. It would also seek new areas in which U.S. and Taiwanese businesses have greater opportunities for investment.

    Taiwan shares many of the same priorities as the U.S. and Japan, and is therefore an important relationship to grow. The U.S.–Taiwan economic dialogue can easily be built with a framework similar to the U.S.–Japan dialogue.REF This includes focusing on three areas of interest: (1) a strategy for building trade and investment rules and addressing disputes; (2) cooperation on economic and structural policies; and (3) sectoral cooperation.

    There are still plenty of issues that need to be worked out between the U.S. and Taiwan. The Office of the U.S. Trade Representative highlights its concerns over Taiwan’s handling of agricultural and farm imports in its regular report on foreign trade barriers.REF This includes addressing limits on the imports of American beef and pork. There are also issues regarding trade and labeling requirements. Other concerns include barriers to financial services and investments in agricultural production, chemical manufacturing, and health care. American businesses in Taiwan have also highlighted concerns over energy availability, labor requirements, and regulatory practices. Many of the issues simply highlight not just inconsistency with U.S. or international standards but a lack of transparency and steady implementation of regulatory requirements.REF

    Areas for Cooperation. The U.S.–Taiwan economic dialogue would be wasted if it did not identify areas for cooperation. The dialogue should be a way to show investors and countries alike that the U.S. supports economic engagement with Taiwan. In addition, the two countries should be willing to collaborate in areas of development across Southeast Asia, which would be in line with Taiwan’s New Southbound Policy to expand cooperation in South and Southeast Asia. This includes working together to counter other countries’ unfair influence, market distortions, and illicit activities.

    One area of cooperation is in the fostering of innovation for the digital economy. This is something that was supported by the American Institute in Taiwan and the National Development Council. Every day more people across Asia connect via the Internet, using cell phones for communication and financial purchases. Soon, it will be more than just people that are connected and communicating as countries in Asia look to build greater networked systems. The U.S.–Taiwan economic dialogue can build on the work that is already a part of the Digital Economy Forum—a bilateral exchange between the U.S. and Taiwan on ways to promote electronic commerce.REF This cooperation can help set standards and norms across Southeast Asia.

    A number of countries in Asia still have restrictions on where, and how much, private companies may invest. According to the USTR trade barriers report, both the U.S. and Taiwan agreed to explore the possibility of re-establishing the Investment Working Group under the TIFA. The U.S. should work toward increasing investment opportunities, such as in electronic commerce. However, there are increasing regulations in Asia that force foreign companies to invest more in building local computing facilities or require the transfer of source code. While there should be greater cooperation with Taiwan in order to counter other countries’ unfair trading practices, including theft or unauthorized duplication of technology, the U.S. also needs allies that can help push against this new wave of digital protectionism.

    A third area for cooperation is energy. Given both the demand for energy in Taiwan, and increased production in the U.S., there has been a significant increase in Taiwan’s purchases of crude oil and petroleum products over the past few years. Taiwan’s state-owned oil and gas company, CPC Corporation, signed a memorandum of understanding to purchase liquefied natural gas from the U.S. for the next 20 years. Again, while a purchase made by a government entity distorts markets, it shows the importance of U.S.–Taiwan trade. The U.S. should seek to expand opportunities to export energy for Taiwan’s private consumption.

    Addressing new areas for cooperation should not necessarily take priority over resolving outstanding issues in the economic dialogue. According to public comments collected by the U.S. International Trade Commission in the late 1980s, “whether or not there is an FTA, the United States and Taiwan need a comprehensive trade framework that would contain ‘principles, targets, and dates’ for resolving trade issues.”REF A high-level economic dialogue should serve as laying the groundwork for an FTA as well—just like the U.S. and Japan announced their upcoming trade deal after a number of economic dialogue meetings.

    Beijing will object to any new initiative between the U.S. and Taiwan, whether it is economic or political in nature. But an economic dialogue, even high-level, would fall well within the boundaries of the U.S.’s traditional one-China policy, consisting of the three U.S.–China communiqués, the Taiwan Relations Act, and Reagan’s Six Assurances. And such a dialogue would be a significant precursor to a U.S.–Taiwan FTA. The Taiwan Relations Act states that it is a policy of the U.S. “to preserve and promote extensive, close, and friendly commercial, cultural, and other relations between the people of the United States and the people on Taiwan.”REF As members of the WTO, both the U.S. and Taiwan are allowed to negotiate a free trade agreement.

    Steps for the U.S.

    The U.S. should pursue every opportunity to promote free-market principles in the Asia–Pacific. The U.S. cannot reasonably go it alone if it wants to significantly address other countries’ non-market activities. The U.S.–Taiwan economic relationship is one worth investing in to promote U.S. interests in the region. Therefore, it is important that the White house:

  • Establish a high-level economic dialogue between the U.S. and Taiwan. The dialogue should be comprehensive, including not just trade issues but non-tariff and 21st-century areas for cooperation.
  • Instruct that the U.S.–Taiwan economic dialogue be led by the U.S. Trade Representative and Secretary of Commerce, who will likely be met by counterparts on the Taiwan side who are responsible for these issues.
  • Instruct the Deputy USTR Secretary to meet Taiwan’s Deputy Minister of Economic Affairs for the 11th round of the TIFA, in order to move forward this new dialogue.
  • Commit the economic dialogue to meet at least once every six months. And, two years after launching the economic dialogue, announce plans to begin negotiations for a U.S.–Taiwan FTA under the guidance of the Trade Promotion Authority.
  • Commit, during FTA negotiations, to remove tariffs on steel exports from Taiwan.
  • Conclusion

    Low-level U.S.–Taiwan economic talks are often postponed because of unnecessary politics. The U.S. wants the removal of barriers to the import of beef. But Taiwan does not want to offer something for nothing. It is time for both sides to move past ultimatums and single issues. The new dialogue should be established without any preconditions other than a full commitment to liberalize trade and investment.

    Congress has been supportive of the U.S.–Taiwan relationship, and officials in Taiwan are hopeful for a new round of TIFA talks since the USTR Deputy Secretary position has been filled. Both the governments in Washington and Taipei should strive to build confidence for U.S. and Taiwanese businesses, reduce uncertainty, and provide greater opportunities for trade and investment.

    —Riley Walters is Policy Analyst in the Asian Studies Center, of the Kathryn and Shelby Cullom Davis Institute for National Security and Foreign Policy, at The Heritage Foundation.



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