License Management Facility (LMF)

[Doug Mohney]

In article <5087 at crltrx.crl.dec.com>, jg at max.crl.dec.com (Jim Gettys) writes:
>By most standards, both Unix and VMS have failed in the mass market to
>date.  For each system of either type, there are more than 10 PC's.
>This looks like failure to me. 

Mostly for the price of one UNIX or VMS box, you can get 3-4 PCs, on
average and the entry-level price point for a PC has traditionally been
something which an Average Joe can afford. Besides, supporting a PC
is MUCH cheaper than a UNIX or VMS box.

Besides, you buy them to do different things. I wouldn't buy a miniVAN
if all I have to do is drive myself to work, eh? Most people aren't
going to buy UNIX and VMS boxes.

>And as these machines have/are becoming
>the same price, as PC's, we better have a software distribution mechanism
>that is at least as economical, despite the fact the software is often
>much larger.  By this standard, we aren't surviving.....

You merely charge more per copy, since you are going to sell
fewer copies. Besides, supporting multiuser systems is always going to
be more expensive than supporting a single user PC.

>If the costs of media were where the costs of software distribution were,
>your points would make more sense. 
>
>Most of the costs however are in order entry, order processing, stocking,
>and shipping.  This is where the (overwealmingly large) hidden costs are;
>and guess what, we have to price software accordingly.

A) You're never going to rid of tape (how else are you going to fix the
   bugs on the CD-ROMS? :-) Besides the installed user base is too high).

B) If you're telling me that the largest cost of software is in DISTRIBUTION,
   I think DEC outta farm out distribution to someone else. 

   Let's play "what if?" Let's say that distribution of package XYZ costs
   $100. Improved distribution via CD ROM cuts that to $10. So, on a $500
   package, you're still at $410 bucks. But you still have to keep tape around
   for eveyrone who owns a TK 50 or 9 track.

So how do you account for the other $410? Development, programmers salaries,
advertising and your Internet link. Going from tape to CD ROM won't drop
the cost of software to $100 per pop, even if you do get "more efficient."
You have to produce more copies of your product to drop the price per
copy.  

Besides, you still need to keep manuals around.

>Other hidden costs include delay to the customer in this loop.

Cost to customer, not to you. This doesn't affect your cost, which is the
premise of your arguement.