440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700

Date: Thu, 23 Nov 2000 20:01:35 -0800

04 00067 61 00112302

Mr. Sanford B. Klausner
Founder and CEO
CoreTalk Corporation
14537 Oak Street
Saratoga, CA 95070

Subject:   SDS Use, SRI Response to Proposal

Dear Sandy,

Just a quick follow up note on your letter today because I did not answer two of your questions...

There are two other regular SDS users in the world: Wayne Wetzel, who is the Deputy Director of DNRC (, and Jeff Ghilardi, a program manager with Enron ( You can send them a letter to ask how they are doing.

Wayne and Jeff saw me use SDS on a project they had, and wanted to become users. Bill DeHart ( had the same experience at PG&E, and he took up SDS, but has since fallen off the wagon, because PG&E would not keep me around for support. A bunch of people were ready to start using SDS at the Corps of Engineers, but they could not get support approved either, so that whole effort folded (you can write to Max Blodgett, Chief, Operations Division,

Fifteen years experience indicates support is necessary for people to pick up and keep using SDS, similar to an accountant who does the detail bookkeeping, but a lot of people do cost control. I am also sure that where people get support, as I have done for the DKR team, demand grows to have that power. So, the game is how to position people to experience the power of "intelligence."

Had a long talk with Doug Engelbart, about 3 hours on the phone, 3 or 4 days ago. He likes SDS, feels it implements his ideas, and agrees we need to develop a new work role, what I call a Com Manager.

Pat Lincoln told me a month ago, that Doug told him he can create SDS in an open source setting under SRI's sponsorship, in about a year. That is what they are banking on with the NIH project. Pat has not officially responded to the proposal submitted on 001011. My guess is he does not know how to present it for approval, because nobody really knows how to explain KM, except me, and I am not real good at it, as you have probably noted.

The telecon with Doug a few days ago seemed to indicate he is beginning to recognize that creating SDS is ambitious. He asked how much it would cost for the team to buy SDS so they can reengineer to build OHS/DKR. I proposed a royalty arrangement, so he is considering that. Right now he is focused on gearing up for a trip to Washington DC to receive an award at the end of the month. I think Doug's age impacts the ability to follow up. We will see.

If you are following the OHS email, you may have noticed I wrote a letter the other day illustrating KM, and ended with some ideas on a royalty arrangement, similar to what was discussed with Doug. This reflected some strong expressions about the added value people see in SDS. Haven't heard from anyone, so it indicates demand to perform KM, is still not there yet. Maybe in another year or two this will change.

Thanks again for continued interest, and good luck with CoreTalk.



Rod Welch