On Fri, 28 Dec 2001 09:23:45 +0900, Doug Lerner <[EMAIL PROTECTED]> wrote:
> 
> 
> [EMAIL PROTECTED] (Thursday, December 27, 2001):
> 
> >On Thu, 27 Dec 2001 21:33:06 +0900, Doug Lerner <[EMAIL PROTECTED]> wrote:
> >> If software were free how could the employees of the software company be
> >> paid to begin with?
> >
> >I am not arguing that all software should be free. I am simply stating
> that in
> >some cases I believe that the free software model is better. Let the market
> >decide. Most free software is developed outside of corporations, and much
> >of it
> >is developed simply as a hobby by the coders (not as a revenue earner).
> >
> >> I'm sorry, but by this logic you could say, "Instead of spending all that
> >> money on a down payment and mortgage, think of all the money I could save
> >> by just moving into the first house I see."
> >
> >Ummm... no.
> >
> >The free software model requires a different way of thinking in order to be
> >properly comprehended. It doesn't work as the capitalist model does, and you
> >will never understand it properly if you persist in viewing it in that
> >way. I am
> >not saying that it is incompatible with the capitalist model -- it is simply
> >different. Indeed, companies like Mandrakesoft and Red Hat have proven
> >that they
> >_are_ compatible.
> >
> 
> Well, I would say the verdict is still out on that. As both Mandrake and
> Red Hat will admit, neither have made profit for their investors yet. 
> Both companies you mention are trading stock in their companies.
> Presumably the people who buy their stock want to make money on it at
> some point. And the employees too. I bet key staff have stock options and
> want to see the value of the stock rise.
> 
> You can't so easily violate "conservation of money". :-)
> 
> doug

Red Hat has posted small (and growing) profits over the past few quarters.
MandrakeSoft is apparently on target to post a profit next year or in 2003.
Considering that the current economic climate is not conducive to profit making,
these are not trivial feats. I think the key staff know what the GNU/Linux
distribution market is like, and they won't be expecting too much from their
share prices. MandrakeSoft is listed on the Marche Libre exchange, which was
chosen (AFAICT) for its stability and lack of over-speculation, which is the
main problem with the NYSE and OTC (AKA Nasdaq). Investors here generally tend
to be more forgiving and don't expect quick, unsustainable profits.

But, as you have said, "the verdict is still out on that". :)

-- 
Sridhar Dhanapalan

"... _no_ major software project that has been successful in a general
marketplace (as opposed to niches) has ever gone through those nice lifecycles
they tell you about in CompSci classes. Have you _ever_ heard of a project that
actually started off with trying to figure out what it should do, a rigorous
design phase, and a implementation phase?" -- Linus Torvalds

Want to buy your Pack or Services from MandrakeSoft? 
Go to http://www.mandrakestore.com

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