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Date:      Fri, 19 Nov 1999 02:05:32 -0800
From:      "David Schwartz" <davids@webmaster.com>
To:        "Phil Regnauld" <regnauld@ftf.net>, "David Scheidt" <dscheidt@enteract.com>
Cc:        <freebsd-chat@freebsd.org>
Subject:   RE: Marketing vs. technical superiority (was: Judge: "Gates Was Main Culprit")
Message-ID:  <000401bf3275$9dcc7d50$021d85d1@youwant.to>
In-Reply-To: <19991119102553.57394@ns.int.ftf.net>

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> David Scheidt writes:
> >
> > Most of them manage to do it in a more sane fashion, though.
> .DLLs suck.
>
> 	The official way is to install the app.
>
> 	Lots of unofficial changes are made through hotfixes, SPs, etc...
>
> 	Like the MS 95 Plus Pack which also fixed a lot of problems
> and missing
> 	features.  That's a blatant example of "pay for fixes".

	Sure. Many, many software companies do that when they can get away with it.

	In general, people seldom purchase an upgrade just to get bug fixes. And,
in fact, a newer version of a product is generally not likely to be any more
stable than previous versions -- new features often mean new bugs. In any
event, nobody in the software industry likes to promote their products that
way. ;)

	Many software companies only provide free fixes for 'security' bugs. I try
to deal with companies that have open, fair, and honest bugfix policies
whenever possible. Microsoft has been much better in the NT market than the
95/98 market. Although in the last 2 years, they've been a lot better. Time
will tell.

	Perhaps part of the reason Microsoft offered the NT service packs for free
was that they did contain so many bug fixes.  Perhaps it was too expensive
to maintain two 'streams', one with just bug fixes and one with new
features. Although now it seems they're committed to doing just that, with
'service' packs and 'option' packs. One suspects the option packs will not
be free. But perhaps Microsoft hopes that keeping prices low will help them
gain market share in the server OS market.

	In any event, this is a peripheral point. In general, I think Microsoft
charges as much as it possibly can for its products considering its long
term view. It knows that low prices hurt profits but that high prices give
people incentives to look elsewhere for solutions. Once the costs of
development have been paid for, prices can easily be kept low, ensuring that
there isn't enough profit oppurtunity left to finance someone else's
development from the ground up.

	What's actually puzzling is why software prices in markets dominated by one
company are as low as they are. One theory is that it's too easy for a
competitor to scale up very quickly and steal domination. As soon as the
price rises enough, a new company could develop a competing product and sell
massive numbers of copies in very short order. Keeping software prices low
maximizes the amount of time market domination can be maintained.

	One ironic point is that Microsoft must continuously innovate to keep its
position as market leader (in terms of sales). Since software does not
'decay' or need replacement, Microsoft can only sell me a word processor
once. Then I have it and could keep using it forever. They have to sell me a
new word processor to maintain sales, and to do that, they'll have to
convince me not to keep using my old one. That will take some sort of
innovation. The staple innovation has been new or combined features.

	And, of course, if the market leader falls too far behind what is possible,
price will become irrelevant. People want products that do what they need to
get done. Sometimes even entire markets become irrelevant and it no longer
matters who was the former market leader. (For example, there isn't much of
a word processor market anymore. Office suites have obsoleted the entire
market. There isn't much of a 16-bit spreadsheet market either.)

	DS



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