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That is initial margin
Go back to business school and understand the difference between initial margin on a product and bottom line profits.

Software companies have wonderful initial margins, calculated essentially as the revenue minus the cost of sales divided by the revenue, since it costs next to nothing to make a CD and put it in a box. Even less if the customer is willing to download the software and live with an on-disk or on-line manual.

Software companies have to spend a lot of money for R&D to stay current or else some competitor will surpass them and steal the market away. They have to spend a lot for product management to keep track of what the consumers want as well. Linux companies and OSS in general do not spend these sums since all they are doing is copycatting the commercial companies and thus they save these costs. Of course they are stagnant until someone else has an idea.
Posted by: amicus_curious   Posted on: 09/30/04 You are currently: a Guest | Members login | Terms of Use
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Desktop Linux a vehicle for pirating Windows  Loverock Davidson | 09/29/04
You'll believe anything won't you  jstead1 | 09/29/04
Misapplied fact, misbegotten conclusion  John Le'Brecage | 09/30/04
re: Misapplied fact, misbegotten conclusion  jdahs@... | 09/30/04
so is gartner saying ACTIVATION doesn't work?  V Sanders | 09/30/04
Not a word about activation  amicus_curious | 09/30/04
It does work..  d_jedi | 09/30/04
In case you hadn't heard..  Wolfie2K3 | 11/29/04
hmm...  wimbo_z | 09/30/04
"Linsux" and "fanboys"  Expatriate US Geek | 09/30/04
Oh Dear we got us a real live one here folks  peten | 09/30/04
'Splain Lucy....  Wolfie2K3 | 11/29/04
Windows Profit Margin Like 85%  andyhayes1 | 09/29/04
at some point all cost are covered - then is 100% from that point on(NT)  V Sanders | 09/30/04
and if they want a tax write off, just donate a few thousand copies  V Sanders | 09/30/04
You have apparently never donated anything  amicus_curious | 09/30/04
That is initial margin  amicus_curious | 09/30/04
Not really..  d_jedi | 09/30/04
Copycats...  jacarter3 | 09/30/04
Actually...  Wolfie2K3 | 11/29/04
read  wimbo_z | 09/30/04
Where do you get that number?  d_jedi | 09/30/04
Used to be worse  GreatInca | 09/30/04
"will be" ?  Richard Flude | 09/29/04
so ...  George Mitchell | 09/29/04
More Gardner FUD  Seething Ganglia | 09/29/04
I am not so sure about that  prong@... | 09/29/04
Geez, the story makes no sense  jstead1 | 09/29/04
No basis in fact  Chad_z | 09/30/04
What's really happening  CobraA1 | 09/29/04
great point  Jeff Spicoli | 09/29/04
All good points  Chad_z | 09/30/04
Microsoft in a catch-22  d_jedi | 09/30/04
This is a joke... right?  jstead1 | 09/29/04
MS Tax  mobrien_12@... | 09/30/04
Same thought  SC-man | 09/30/04
Sounds like a lot of trouble  John L. Ries | 09/29/04
.. but the advantage of that approach is..  d_jedi | 09/30/04
.And your point is...  John L. Ries | 09/30/04
My point is..  d_jedi | 10/01/04
I'll accept that.  John L. Ries | 10/01/04
MS should employ a dongle ...  George Mitchell | 09/29/04
Wow...that would be awesome! After all...  Stellardyne | 09/29/04
is the same thing basicly  V Sanders | 09/30/04
and do not forget  V Sanders | 09/30/04
Isn't that what they're doing?  d_jedi | 09/30/04
And just suppose ...  George Mitchell | 09/30/04
I agree with you but you were harsh on the other guy  DigitalKid | 09/30/04
Actually...the hack could circumvent the dongle...  Stellardyne | 09/30/04
Thanks for explaining  DigitalKid | 09/30/04
No...actually dongle protection is easy to get passed...  Stellardyne | 09/30/04
You are right, Windows piracy is not new.  George Mitchell | 09/30/04
Palladium anyone?  mobrien_12@... | 09/30/04
sounds good  V Sanders | 09/30/04
Thats true  anon_engr | 09/29/04
Umm...I don't get it...  Stellardyne | 09/29/04
I agree with you  V Sanders | 09/30/04
Huh?  d_jedi | 09/30/04
GETTING AWAY OF HAVING TO PAY FOR A NEW VERSION EVERY YEAR  gui_mart | 10/12/04
Oh My GAWD! what a bunch of MORONS!  igaduma | 09/29/04
How about instead of name calling...  Michael Kelly | 09/30/04
Onebase  richdave | 10/02/04
Well, since Gartner hates MS, it must be true  FilledOut | 09/30/04
MS is gartners biggest 'customer'  doh123 | 09/30/04
I've never seen such a poorly written....  BitTwiddler | 09/30/04
what percent of windows pc become linux  V Sanders | 09/30/04
Survey says: Gartner's hidden truths  John Le'Brecage | 09/30/04
HEY EVERYONE! HE MENTIONS ME!!  Loverock Davidson | 09/30/04
And you wonder why  Physco Dude | 09/30/04
Same old trick  achavez382 | 09/30/04
Same old trick  Loverock Davidson | 09/30/04
Must be  IT_User | 09/30/04
You are after all the epitome of the remark...  John Le'Brecage | 09/30/04
Up to the OEMs  amicus_curious | 09/30/04
Only in theory  Yagotta B. Kidding | 09/30/04
This article misleading at best..  d_jedi | 09/30/04
What About Removing XP to Install Linux??? Refund???  brenthawkinsmd | 09/30/04
Someone tried that in Australia a few years back!  B.O.F.H. | 09/30/04
Ummm, and you didn't know Windows was included in the price?  No_Ax_to_Grind | 09/30/04
Hey, dull ax.  richdave | 10/02/04
This USED to be a good argument ...  George Mitchell | 09/30/04
$36  Bill4 | 09/30/04
If you only want to run three apps at a time, with no networking, no WMP...  d_jedi | 09/30/04
Hmmmmm.  richdave | 10/02/04
Sink the pirates  Yagotta B. Kidding | 09/30/04
Sink the pirates  rcarlson52@... | 09/30/04
Please Define Desktop Linux  rcarlson52@... | 09/30/04
Screams past!!??  richdave | 10/02/04
Using Licensed copies  RexBallard | 09/30/04
MS "Monopolistic Extortion" continues...  PVkWatts | 09/30/04
I don't understand why MS hasn't revived Xenix.  richdave | 10/02/04
Can be a good little sandbox for viral testing  FilledOut | 09/30/04
Gartner has it backwards - again  RexBallard | 09/30/04
Truth hurts.... (nt)  No_Ax_to_Grind | 09/30/04
Happens everytime  dw5437@... | 09/30/04
I don't like bootleggers. I like P2P. Free is better than a buck.  GreatInca | 09/30/04
I knew it was gartner just from the title  Arrg | 09/30/04
.....and why?  ka0mos | 09/30/04
Windows is a bigger vehicle for piracy - read how !  mvaar | 10/01/04
Biased Viewpoint.  Traveler545220 | 10/01/04
Blackbeard the Pirate calling FOUL ? ? ? ?  Oat Mea1 | 10/01/04
Piracy!? Wait a minute  richdave | 10/02/04

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