Re: Cause and Effect Reversed?

-----Original Message-----
From: Leif Svalgaard <leif@leif.org>
To: MIDRANGE-L@midrange.com <MIDRANGE-L@midrange.com>
Date: Friday, September 29, 2000 7:13 PM
Subject: Re: Cause and Effect Reversed?


>I don't think the algorithm is invalid, just that it is not applicable.
>The duplication cost for software is essentially zero ($0.25 per CD).
>I don't think MicroSoft uses the algorithm in pricing MS-Word, or
>Windows, or anything else. The Linux people certainly don't.
>It is time to get back to the original problem: Can we by lowering
>the unit price on software (OS/400) increase the sales of AS/400
>hardware. I think so. I think that the AS/400 is overpriced (most
>of that is software - at least compared to Linux or NT) and that
>that partly (apart from lousy marketing) is the reason for the
>slow sales. Do you have a problem with that?
>


Not a problem, but if you think that people are going to invest in AS/400
hardware, just because the OS is cheap, you are wrong.

If the OS runs on something else that I have and is cheap, then yes, they
will buy the operating system. That is what IBM is counting on now.

You used the M$ thinking in your argument which is just a historical error.

===========================================================
R. Bruce Hoffman, Jr.
 -- IBM Certified Specialist - AS/400 Administrator
 -- IBM Certified Specialist - RPG IV Developer

"Those who would give up essential Liberty,
  to purchase a little temporary Safety,
  deserve neither Liberty nor Safety."

     - The Papers of Ben Franklin



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