Subject: Re: "I've got more programmers than you"
From: D V Henkel-Wallace <gumby@henkel-wallace.org>
Date: Thu, 4 Oct 2001 13:38:38 -0700

At 06:47 -0700 2001-10-04, Zimran Ahmed wrote:
>
>it also sounds like folks on this list are comparing
>FSBs to software companies when they talk about
>"inherent financial weakness." This is almost
>certainly the wrong model, better to look at service
>firms, like niche consultancies, law firms, etc. Only
>coming from the software world could you gripe about a
>20% margin being slim. Most industries would kill for
>margins that fat.

Yes, but the FSB's competitors have that higher margin.  Commodity 
and consultancies compete against each other.  So the FSBs have to 
find a way in which the FS allows them to cut cost in a competitively 
sustainable way.

The examples quoted earlier of IBM w/Linux and the appliance guys are 
of course actually the same example.