Subject: Re: how to create 21,780 new free software jobs (2,530 in R&D)
From: "Forrest J. Cavalier III" <mibsoft@mibsoftware.com>
Date: Mon, 4 Nov 2002 23:57:07 -0500 (EST)

> From:          Tom Lord <lord@emf.net>
> To:            fsb@crynwr.com
> Subject:       how to create 21,780 new free software jobs (2,530 in R&D)

> computing".  And, remember, it costs:
> 
>  $11/month
> 

I'm not saying there is no market, but I think you
overestimated willing customers.

Most people don't pay $132 a year to keep Windows up to date.

(I'd even venture to say that most people running some version
of RedHat are not paying $60 a year for a RHN subscription.)

> for the software and support components (i.e., that doesn't count
> remote storage or bandwidth costs).

And it doesn't count a lot more.

Apparently ISPs can survive getting about $10 a month per subscriber.
(That supports the organization, facilities, bandwidth, and giving
bad technical support.)

Certainly your $11 and services must be on top of that $10, not
instead of it.

--------

"Good support" seemed to be the selling point for your service.
I think you underestimated support costs.  

Users (and user populations) have very diverse needs, which
are satisfied by using many different software packages.  You
can never offer "all your binaries."  You must fence off a
subset of what you will support, which is another way of
saying you divided your market/created a new distro.  That's
OK, but it isn't a new business model.