> Then why is the software industry as a whole trying to transition itself
> into subscriptions? Are you arguing that if Microsoft's new plans for
> subscription based services are successful, banks will stop lending them
> money?
Yes, but to get a subscription you first have to purchase the base license.
The subscription is on top of this, and covers you for upgrades (and
sometimes support) for the period subscribed.
I don't think the "no up-front, monthly payment only" model will work cash
flow- and profit-wise, unless the numbers work out like the earlier message
someone posted regarding Mitec, which is a leasing company (I believe). If
you run their numbers, I think you'll see their interest rate is _way_
higher than a normal business loan, but you still can't "back out" when you
feel like it. Access to OPM (Other Peoples' Money) doesn't work like that.
> A little dramatic, eh?
No, frankly I think my assessment was spot-on, because that's exactly what
happens. It really does.
> How's your company fairing the tech slowdown? :)
Sixteen years in business and counting, thanks! That makes us old in this
industry... anybody got any PolyGrip? Both revenue and profit are very
good, good cash flow, good reserves, virtually no debt. Lean and mean.
We're now in the process of purchasing lots of software licenses for two of
our new advanced training classes (graphics and scalability), which is what
prompted my original reply on this subbject.
Don't worry about this tech slowdown, folks. We're just in the cooling down
period after the mindless Internet Orgy of the past couple of years, where
rational thinking was abandoned in favor of raw, below-the-belt urges to
mate. The market is just temporarily smoking a cigarette and contemplating
the consequences of its actions as it lays in bed. Tomorrow it will go back
to its wife, little Timmy, and the dog, Scruffles.
Market forces work.
Respectfully,
Adam Phillip Churvis
Advanced Certified ColdFusion Developer
Productivity Enhancement, Inc.
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