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Apples and Oranges
It's an economic fallacy to compare the cost of software to the price of developers. Software's value doesn't derive from the code it derives from the job it does. The more critical the application, the more the supporting developer is worth. The cost of the underlying software is immaterial. Oracle DBA's don't necessarily command a higher price because Oracle is expensive but because many companies run their critical accounting applications on Oracle based systems.

Trying to compare a mind share industry to smoke stack manufacturing is going to lead to some erroneous conclusions. And tying the cost of the developer to the cost of the software is one of them. It doesn't matter if your business runs on Windows or Linux, as long as it runs and does the job. If it stops doing the job, it doesn't matter if it cost 10 million or 10 cents it's worth a lot to get it back up and operating right now.

I wouldn't call the balance between open source and proprietary software an equilibrium, I'd call it a stage of evolution. A rest stop on the way to a new industry model. Open source changes all the rules of the software industry. I guess you might call it an equilibrium in the same context that a drowning man can sometimes flail violently for a while and keep his head at equilibrium above the water. Eventually the water wins and eventually open source as a business model will win. It's more efficient that proprietary development. Not always a guarantee of future success (aka the QWERTY keyboard layout), but it certainly is where smart people put their money.

You can scream against the wind all you want but that isn't going to stop a hurricane.
Posted by: Chad_z   Posted on: 05/19/04 You are currently: a Guest | Members login | Terms of Use

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Economics of OSS shift costs to the integration side (increased investment)  oldskool | 05/19/04
repost (dang zd forum SW sux).  oldskool | 05/19/04
But can you eat your cake and have it too?  Patrick Jones | 05/19/04
Wasn't that the Unabomber construction?  John Carroll ZDNet Moderator | 05/19/04
Cake (way off topic)  Patrick Jones | 05/19/04
Flawed Analogies and assumptions  Tim Patterson | 05/19/04
Some clarification  John Carroll ZDNet Moderator | 05/19/04
Gatekeepers and admission costs  Robert Crocker | 05/19/04
Costs  John Carroll ZDNet Moderator | 05/19/04
Huh?  Robert Crocker | 05/20/04
OSS allows more innovation...here's how.  techboy_z | 05/19/04
Did you notice you called OpenOffice more innovative?  Anton Philidor | 05/19/04
You might look at OO's drawing capabilities  j.m.galvin | 05/19/04
When They Have A Package Like Office Pro  JimSatterfieldW | 05/21/04
Problems  John Carroll ZDNet Moderator | 05/19/04
Telling the true  theo_durcan | 05/19/04
Competition  John Carroll ZDNet Moderator | 05/19/04
You Are Mistaken  P. Douglas | 05/19/04
A matter of degree  Tim Patterson | 05/19/04
Re: A matter of degree  John Carroll ZDNet Moderator | 05/19/04
Need is the incentive  voska | 05/19/04
You agree, no price advantage for open source.  Anton Philidor | 05/19/04
Absolutely is a price advantage  Tim Patterson | 05/19/04
But there is a price advantage.  el1jones | 05/19/04
Costs add up.  Anton Philidor | 05/19/04
re: Costs add up  Iain_Peters | 05/19/04
Because you agree to help.  Anton Philidor | 05/19/04
Keeping programmers as pets  Anton Philidor | 05/19/04
why innovate?  ryusen | 05/19/04
Need, not money  Anton Philidor | 05/19/04
actually  ryusen | 05/19/04
Apples and Oranges  Chad_z | 05/19/04
Valuation  John Carroll ZDNet Moderator | 05/19/04
Why don't the usual rules for salaries apply?  Anton Philidor | 05/19/04
Regarding Salaries  John Carroll ZDNet Moderator | 05/19/04
What makes perception special here?  Anton Philidor | 05/19/04
Wrong quote; let's try the one about salaries.  Anton Philidor | 05/19/04
You can't compare physical objects to software...  Robert Crocker | 05/19/04
You have a flawed understanding of the software  StorageGuru | 05/19/04
That was amusing  Robert Crocker | 05/19/04
Are you nuts ?  JJ_z | 05/19/04
Not nuts, just looking elsewhere  Robert Crocker | 05/19/04
You have a gap in your education, Crocker!  Bill Weisgerber | 05/19/04
You are missing the point, Weisgerber!  Taz_z | 05/19/04
Another one who only reads the linus line!  Bill Weisgerber | 05/19/04
Thanks for your "learned" input  Robert Crocker | 05/19/04
You still have to download it  voska | 05/19/04
Do you really understands the different types of software products ?  JJ_z | 05/19/04
To a certain extent, you're right  John Carroll ZDNet Moderator | 05/19/04
But where is the incentive?  Robert Crocker | 05/19/04
I can ignore software lies, but not the cheese market, too!  techboy_z | 05/19/04
Demand for programming  Anton Philidor | 05/19/04
Exactly, almost  StorageGuru | 05/19/04
Agreed, but you're talking products OSS won't match  Anton Philidor | 05/19/04
Almost..  Patrick Jones | 05/19/04
Good point !  mbraincell@... | 05/19/04
Not exactly...  Patrick Jones | 05/19/04
This is funny.  mbraincell@... | 05/19/04
Partially..  Patrick Jones | 05/19/04
Maxed out market  John Carroll ZDNet Moderator | 05/19/04
Hey, ya wanna buy some software?  Anton Philidor | 05/19/04
And...  John Carroll ZDNet Moderator | 05/19/04
Let's turn that on it's head.  Robert Crocker | 05/20/04
I've said it before, John  bidemytime | 05/19/04
If Ifs and ands were pots and pans....  StorageGuru | 05/19/04
Indeed  bidemytime | 05/19/04
Patronage  techboy_z | 05/19/04
Working as a programmer  John Carroll ZDNet Moderator | 05/19/04
Re: Patronage  John L. Ries | 05/20/04
John, the slow-changing core is valuable.  Anton Philidor | 05/19/04
Core  Patrick Jones | 05/19/04
Models for software and selling  Anton Philidor | 05/19/04
Shoes, ships and sealing wax...  Patrick Jones | 05/19/04
MS "gives away" the Mac version of IE & Outlook Express  j.m.galvin | 05/19/04
Seems unlikely Microsoft is giving gifts...  Anton Philidor | 05/19/04
Nope  j.m.galvin | 05/19/04
You know there was a reason for that, right?  voska | 05/20/04
Regarding Apple and Linux  Robert Crocker | 05/20/04
Regarding open sourcing the core  John Carroll ZDNet Moderator | 05/19/04
Looking at all those limits...  Anton Philidor | 05/19/04
Hmmm, what happens when computers are "self programming"?  No_Ax_to_Grind | 05/19/04
Systems Analysts will rule again. :-D  Robert Crocker | 05/19/04
Agreed  Patrick Jones | 05/19/04
They walk the halls.  Anton Philidor | 05/19/04
Funny.  Patrick Jones | 05/19/04
Life with Fodder  Anton Philidor | 05/19/04
never worked in power plant have you?  voska | 05/19/04
Depends on the color of their shirt.  No_Ax_to_Grind | 05/19/04
Quite some distance away  voska | 05/19/04
I think the real key is a BIO chip.  No_Ax_to_Grind | 05/19/04
Is this the same BIO chip  voska | 05/20/04
Good point  John Carroll ZDNet Moderator | 05/19/04
Big business in damaged hard drives actually  voska | 05/20/04
AI Programming is...  John Le'Brecage | 05/19/04
AI Programming is...  seosamh_z | 05/20/04
They tried that - it was the failure of shrinkwrap SW - led to outsourcing  oldskool | 05/19/04
They tried that - it was the failure of shrinkwrap SW - led to outsourcing  seosamh_z | 05/20/04
Socialized Software  P. Douglas | 05/19/04
I don't htink that's true  NemesisNL | 05/20/04
soem comments  ryusen | 05/19/04
How about the samples?  StorageGuru | 05/19/04
About the $2,000 coat...  Robert Crocker | 05/19/04
Re: About...  John Carroll ZDNet Moderator | 05/19/04
The coat is raw material to feed the tailor and shoemaker  oldskool | 05/19/04
A question of generation, perhaps?  John Le'Brecage | 05/19/04
Formatting for Talkback  Robert Crocker | 05/20/04
Thanks! Was stymied by that  maxo_z | 05/21/04
truth is MS can drop prices and still compete with OSS  oldskool | 05/19/04
truth is MS can drop prices and still compete with OSS  seosamh_z | 05/20/04
False assumtion I: "FREE" software  theo_durcan | 05/19/04
Free Software  azurensis | 05/20/04
The cost of DB sure does matter  voska | 05/20/04
MS access?  NemesisNL | 05/24/04
ehm  NemesisNL | 05/20/04
Not much to argue about  John L. Ries | 05/20/04
I've long advocated a hybrid model for open source software companies  scroisier | 05/21/04
Pricing pressure due to free software  mr.pragmatic | 05/21/04

What do you think?

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