Re: Compiler business prospects

[Ludovic Brenta <ludovic@ludovic-brenta.org>]

On Feb 5, 12:23 am, Stephen Leake <stephen_le...@stephe-leake.org>
wrote:
> Erich <j...@peppermind.com> writes:
>>> See http://fosdem.org/2012/schedule/event/keynotes_model_success
>>>
>>> You *can* sell GPL software and make a profit. That's just a fact.
>>
>> I really didn't want to get into this discussion but I have to reply
>> to this, because your claim is completely misleading. The talk you
>> link to is about AdaCore. Sure you can make money with business-to-
>> business software, especially when it involves very special know-how,
>> but you do *not* make the money by selling the software. You are paid
>> for the consulting, product service, and maintenance and *not* for the
>> software.
>
> +2
> Ludovic, you were spreading FUD.

No. The FUD is in thinking *a priori* that this business model is
"impossible" and presenting that as a "fact".  What I said was not
FUD, it was perfectly correct and it is a proven fact that one can
sell libre software and make a living, like AdaCore has proven for
decades.  However this is not true in all cases as Robert Dewar
himself admitted during his keynote speech at FOSDEM this Saturday.
One case where this business model is not sustainable is when the
product is expensive to make but must be sold at a low price; this is
true of movies and video games among other things.

It was not obvious from the OP that he was envisioning selling cheap
software for consumers.  The fact that he wants to run a small company
does not imply that the products inexpensive; I myself have worked and
still work in a small company selling expensive products and services
to big corporate customers.  I believe this is in fact the case of
many regulars of comp.lang.ada.

More generally, I personally believe that small companies cannot
compete by selling cheap products in the mass market and that this
applies not only to software but to pretty much everything; this is
because the key to succeeding in the mass market is to control
distribution channels (i.e. retail stores).  This is much more work
than a small company can handle and a one-person company wants to
spend their time developing, not marketing.  A small company that goes
to the consumer market usually ends up being controlled (and
pressured) by their distributors.  It is easy to see this in bicycle
shops and their suppliers: the small ones thrive and survive only
because they sell expensive high-end products, expert advice and
premium customer support, thereby avoiding the mass market.  Mind you,
these are not "facts" but only my perception.

--
Ludovic Brenta.