Subject: I wonder if Craig Mundie reads this list
From: Tom Lord <>
Date: Mon, 4 Mar 2002 14:26:12 -0800 (PST)

He certainly seems to agree with my criticisms of current FSB models,
though he describes those criticisms in absolute, rather than
contingent terms, blaming on the licensing practices rather than 
business models.

       Mundie: (

       "If there is not commercialization there, a company can only exist
       based on ancillary manufacturing or services. If commercialization was
       cut down, investors would not support research and development in the
       IT sector, less projects would be developed, less taxes paid and the
       government would have less money to run universities, and all the
       other things that governments do," said Mundie.

His fallacies:

1. The presumption that "ancillary manufacturing or services"
   necessarily can not earn the profits that are possible with
   proprietary licensing.  (We on the list all seem to agree that
   that's true for the services being sold today, but don't all
   agree about the possibility of new kinds of service that overcome
   that limitation.)

2. The presumption that investors, not customers, ultimately pay for
   R&D (exploitation of stock market bubbles not-withstanding).
   Service based, rather than investment based funding models for R&D
   are potentially more efficient and more effective.

3. His presumption that increasing use of publicly licensed software
   necessarily results in lower overall IT spending.  It might also
   result in similar levels of spending that yield higher quality 
   results and faster progress.