Subject: Re: gross margins, R&D, S&M, G&A, and all that
From: "Jonathan S. Shapiro" <shap@eros-os.org>
Date: Sun, 7 Oct 2001 19:31:19 -0400

> Conversely, if you focus too much on maintaining degrees of freedom,
> then you are more likely to make the mistake of not taking the big
> gamble for the big reward.  Sometimes you just have to bet on which
> way things will go.  Of course you hedge your bet as much as you can...

I understand what Ian is saying, and I agree, but its important to note that
the risk/reward ratio varies a lot depending on where you are in the project
lifecycle. The risk in a given phase of a project is proportional to how
hard it is to revise decisions in that phase after a product has gone to the
field. Defects in implementation, for example, can often be replaced by
subsequent reimplementation. Defects in architecture create difficulties of
implementation and ongoing compatibility nightmares and can limit future
product evolution severely.

I don't dispute what Ian said. I merely observe that one needs to consider
both sides of the risk/reward tradeoff before placing your bet.


Jonathan