Rant ON:

Well the Foundry is a business, which at the end of the day, has to make people 
money. I would imagine that given the amount of expansion and new development 
that has been going on, that the company was in need of additional capital, if 
for no other reason than to fund continuing development efforts and expand into 
new markets.

I'm thinking that it might be difficult to make money in this business. At the 
end of the day, the R&D cost is through the roof, and the market is very small 
for end-users, a niche market at best. 

One thing that scares me about the Carlyle group is that they are in business 
ONLY to make money for their investment partners. As time goes on, they are 
going to insist that the Foundry turn double digit profits, or face closure, or 
fire sale. Maintenance is only the beginning, really. Bring up the cost of 
maintenance by a little bit, and see what the market will bear. As time goes on 
the cost of doing business for the Foundry increases. Fluctuation in the 
exchange rates, programmer salaries, office space rental, even small items like 
food and power, all increase year over year. So I think the market will 
consider it acceptable for the rates to go up, and they will be paid, because 
nearly every major VFX house on the planet has made an investment in Nuke. 

Here is the part that scares me. Maintenance on Nuke costs $1,000 per year 
right now. Obviously, the Foundry needs to increase this by $X per year to 
cover their increased cost of business. The market, on the other hand, is 
willing to tolerate an increase of $Y. If $Y is greater than $X, the Carlyle 
group is going to want to charge $Y, since they are a business solely motivated 
by return on investment. I just hope that the desire for profits doesn't 
negatively affect the Foundry in other ways. I hope that we won't see a 
reduction in customer service, adverse working conditions for the developers, 
holds on salary increases, increased product cost, etc. etc.

The Foundry is a company that was established to serve the post production 
community with initially a fantastic set of plugins, and now, a great 
compositing package. The post production community has rewarded the Foundry 
with giving it market domination in compositing. Now, when a private equity 
firm invests, they become in charge. The post production community could 
potentially be at their mercy, because Nuke adoption has become widespread and 
there isn't a lot of competition in the space right now. 

At the end of the day, I hope that the Foundry doesn't become corporate, and 
that the focus isn't entirely profit-motivated. I hope that the soul of the 
company remains, and that they provide tools that help make what is in people's 
imaginations a reality.

Rant OFF.

-n


On Apr 12, 2011, at 11:40 AM, Christopher Noellert wrote:

> http://en.wikipedia.org/wiki/Carlyle_Group
> 
> Perhaps you've seen Fahrenheit 911?
> 
> Best,
> Chris
> 
> --
> PublicVFX
> Chris Noellert
> 69 Market Street, Venice, CA, 90291
> 310.450.6969 o
> 310.450.6999 f
> 310.699.2151 c
> [email protected]
> aim: [email protected]
> http://www.publicvfx.com
> 
> 
> 
> 
> 
> 
> 
> 
> 
> 
> On Apr 12, 2011, at 11:36 AM, Eddie Offermann wrote:
> 
>> I think I'd rather have a better resource for information about them than 
>> Chuck Baldwin.
>> 
>> Got anything from somebody that's not a bit of a nutter?
>> 
>> On 04/12/2011 07:54 AM, andrei gheorghiu wrote:
>>> Carlyle Group : http://www.covenantnews.com/baldwin030328.htm
>>> 
>>> No wonder TheFoundry didn't post anything about this on their web site...
>>> 
>>> _______________________________________________
>>> Nuke-users mailing list
>>> 
>>> [email protected]
>>> http://support.thefoundry.co.uk/cgi-bin/mailman/listinfo/nuke-users
>>> 
>>> 
>>> 
>> 
>> 
>> -- 
>> Eddie Offermann
>> blog: 
>> http://eddieoffermann.com/blog/ imdb: http://www.imdb.com/name/nm2835373/
>> 
>> linkedin: 
>> http://www.linkedin.com/pub/1/B00/07B
>> 
>> fax: 215-565-3799 - phone: (323) 638-4VFX
>> 
>> Give a man a fish and he'll eat for a day. Teach a
>> man to fish and one day he'll trip and fall and put
>> his eye out on a fishing pole and it'll be all your
>> fault.
>> 
>> _______________________________________________
>> Nuke-users mailing list
>> [email protected]
>> http://support.thefoundry.co.uk/cgi-bin/mailman/listinfo/nuke-users
> 
> _______________________________________________
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