In an earlier assumption and model foras Hhealthcare technology and Pprofessional services partner, we didn’t include the Treseta licensing fee but added the cost of building the new platform. We assumed that DA2 will use the partner's existing platform to deliver solutions while the new platform will be built out by year 2017. Therefore, we put $750,000 as a cost for FY 2016 Q4 and $3M for FY 2017. We didn’t consider the scenario where a healthcare company will not have a pre-existing technology platform and has to partner with a technology company like Treseta.

Only in the technology partner we have added $1,000,000/Per customer/Year as a licensing cost that includes Tresata Licensing Fee + Azure + HD Insight + R

Here is what we can do in our model to accommodate KPMG's request

We need to create

To accommodate KPMG's request we can replace the platform building cost with the Treseta licensing fee ($38k/month in 2016, $700k annual in 2017)


Please give me a call so I can explain.