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I don't get it. What real R&D is there for a distribution? At $40.00 retail RH gets about $20.00. A few $ for a box and a few disks and a small manual. Maybe $5.00 in direct cost.
Most of the real production is free. M$ made millions+++++ selling DOS for $30.00 a pop.
Look at the Debian model. A good distribution. Package management is its selling point. It is not nicely packaged, however it is good.... if you have some understanding of how to configure it. Debian is not commercial. I don'tknow a single person that has paid for Debian, Yet They Survive....
Look at Mandrake. It installed on my laptop and _everything_ works. I've heard some grumbling about $ from them........ I'll be they keep selling a boxed version.
>From my limited knowledge of Linux, I feel relatively confident that with $5000.00 worth of equipment, a DSL connection and two other fellas, we could product a nice distribution of Linux that would be somewhat easy to install and comprehensive.
Given my model, A million copies sold at $10.00 each (about $19.99 retail) with $300,000 in cost would create a nice cash flow wouldn't you say?
Keith
david uhlman <
plug_mail@50km.com> wrote:
One only need to look as far as Redhat's sec filings to see that retail
costs them more than it makes them. Their last 10K and recent 8K really
show the difference though.
Revenue in thousands
(Subscription & service)
Enterprise technologies $14,918 $12,289 $6,694
Retail 3,121 4,462 2,941
Embedded 490 646 761
(Service)
Enterprise technologies 9,147 9,039 9,993
Embedded development services 1,173 746 845
COGS
(subscription)
Enterprise technologies and
retail 2,220 2,974 1,930
Embedded 90 129 129
(service)
Enterprise technologies 4,976 4,865 4,629
Embedded development services 695 784 931
Research and development 6,104 5,779 4,817
In a nutshell there R&D costs continue to rise for consumer Redhat while
there retails revenues declined by a 20%. Enterprise services account
for $25mill, retail $3.2mill down 20% from last year.
I think as well that a redhat based project that aims for more stability
than fedora will emerge off of the RH ES platforms source rpms
repository. All it really needs is a packger and installer, say
anaconda.
A lot more Linux companies are going to be moving to this model like it
or not. If you want nicely packaged and iso-ed distributions you are
going to have to pay for that in the future, basic economics. There will
always be debian but that doesn't necessarily meet the needs of many of
the current redhatters.
I will say though that redhat needs to be careful not to alienate too
much the base of developers and contributors that have made it so
successful. I think you will see some concessions on this front over the
next year or two.
Sincerely,
David Uhlman
CTO 50KM Inc.
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<DIV>I don't get it. What real R&D is there for a distribution? At $40.00 retail RH gets about $20.00. A few $ for a box and a few disks and a small manual. Maybe $5.00 in direct cost.</DIV>
<DIV> </DIV>
<DIV>Most of the real production is free. M$ made millions+++++ selling DOS for $30.00 a pop.</DIV>
<DIV> </DIV>
<DIV>Look at the Debian model. A good distribution. Package management is its selling point. It is not nicely packaged, however it is good.... if you have some understanding of how to configure it. Debian is not commercial. I don'tknow a single person that has paid for Debian, Yet They Survive....</DIV>
<DIV> </DIV>
<DIV>Look at Mandrake. It installed on my laptop and _everything_ works. I've heard some grumbling about $ from them........ I'll be they keep selling a boxed version.</DIV>
<DIV> </DIV>
<DIV>From my limited knowledge of Linux, I feel relatively confident that with $5000.00 worth of equipment, a DSL connection and two other fellas, we could product a nice distribution of Linux that would be somewhat easy to install and comprehensive.</DIV>
<DIV> </DIV>
<DIV>Given my model, A million copies sold at $10.00 each (about $19.99 retail) with $300,000 in cost would create a nice cash flow wouldn't you say?</DIV>
<DIV> </DIV>
<DIV>Keith</DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV><BR><BR><B><I>david uhlman <
plug_mail@50km.com></I></B> wrote:</DIV>
<BLOCKQUOTE class=replbq style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #1010ff 2px solid">One only need to look as far as Redhat's sec filings to see that retail<BR>costs them more than it makes them. Their last 10K and recent 8K really<BR>show the difference though.<BR><BR>Revenue in thousands<BR>(Subscription & service)<BR>Enterprise technologies $14,918 $12,289 $6,694<BR>Retail 3,121 4,462 2,941<BR>Embedded 490 646 761<BR><BR>(Service)<BR>Enterprise technologies 9,147 9,039 9,993<BR>Embedded development services 1,173 746 845<BR><BR>COGS<BR>(subscription)<BR>Enterprise technologies and <BR>retail 2,220 2,974 1,930<BR>Embedded 90 129 129<BR><BR>(service)<BR>Enterprise technologies 4,976 4,865 4,629<BR>Embedded development services 695 784 931<BR><BR>Research and development 6,104 5,779 4,817<BR><BR>In a nutshell there R&D costs continue to rise for consumer Redhat while<BR>there retails revenues declined by a 20%. Enterprise services account<BR>for $25mill,
retail $3.2mill down 20% from last year.<BR><BR>I think as well that a redhat based project that aims for more stability<BR>than fedora will emerge off of the RH ES platforms source rpms<BR>repository. All it really needs is a packger and installer, say<BR>anaconda.<BR><BR>A lot more Linux companies are going to be moving to this model like it<BR>or not. If you want nicely packaged and iso-ed distributions you are<BR>going to have to pay for that in the future, basic economics. There will<BR>always be debian but that doesn't necessarily meet the needs of many of<BR>the current redhatters.<BR><BR>I will say though that redhat needs to be careful not to alienate too<BR>much the base of developers and contributors that have made it so<BR>successful. I think you will see some concessions on this front over the<BR>next year or two.<BR><BR>Sincerely,<BR>David Uhlman<BR>CTO 50KM Inc.<BR><BR>---------------------------------------------------<BR>PLUG-discuss mailing list -
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