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RE: Open Source or Else

• To: "'Thomas B. Passin'" <tpassin@c...>, xml-dev@l...
• Subject: RE: Open Source or Else
• From: "Bullard, Claude L (Len)" <clbullar@i...>
• Date: Fri, 21 Feb 2003 08:18:26 -0600

Note that they (Syntrillium) keep their business model going 
by having a plug-in architecture, and the cost 
of the plug ins is approximately two third that 
of the core program.  So the user picks only the 
functionality they need as they specialize.  The 
migration from freeware to cheapware for that 
particular product served to carve out a sustainable 
niche.   I could not write the programs they provide 
but I can apply them fairly quickly (about two weeks). 
Had they kept it in the original DOS-mode where one 
typed in formulas, it would have never made it to 
my machine much less my desk top.

Of the comers in this kind of market, Rick Jeliffe's 
Topologi stands out for XML. For VRML, the Spazz3D editor 
is a very good buy.
 
Low initial cost to get productive and make it over 
the hump of the learning curve, plus expandability 
as needed at costs commensurate with the initial 
price create a sustainable business model.  This 
is perhaps only true for software that tends to 
sell to individuals, but with attractive site 
licensing, it can certainly apply to an enterprise.

Studio mics are another area where a sweet spot 
price emerged: approx $299.  Here the next level 
of real performance improvement is about $2k. So 
there can be a big gap between the semi-pro gear 
and the full-up professional systems that is wide 
enough for the semi-pro gear to take the market. 
We refer to that here as a tiered market where 
the high end is tier 1, the next level is tier 2, 
and so on.  What happens as technology becomes 
more powerful is that tier 1 collapses into tier 
2.  This is where the aggressive start ups can 
indeed start carving off a piece of the pie and 
force the tier 1 systems to come out and fight.

len

-----Original Message-----
From: Thomas B. Passin [mailto:tpassin@c...]

I use CE and Len, you are right on, it is marvellous. I do not mind paying
for a significant upgrade for low-cost superb software like this.  Their
authors deserve support.  There  are a few others - EditPlus, the text
editor, is another one of my favorite cheapware programs.

The value really shows up when I cannot picture myself creating a comparable
program myself - either it would take much too much time, or too much
specialized knowledge.

It works if the price stays low and the value fair, but once it rises too
high, people stop buying (or at least I do).

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