[comp.sys.mac.system] Cost Of System Software

bjones@Apple.COM (Bruce Jones) (04/29/91)

All of this talk about the cost of System 7 software brings up some interesting
questions that might be more worth discussing here than trying to guess
Apple's marketing plans.  For example, how much is System 7 worth?  Is it
worth as much as After Dark (MacConnection price of $22)?  Is it worth as much
as MacWrite ($142)?  How about as much as Empower ($195)  Would you pay as
much for it as you would Quark XPress ($519)?

How should you determine the cost of software?  By Size?  Empower is about 70K,
so it costs around $2.75/K.  MacWrite is around 2100K so it costs about
7 cents/K.  It looks like System 7.0 will be about 7800K, so by Empower
standards it would cost $21,450.  By MacWrite standards it would cost $546.
Suppose you can get System 7.0 on the street for $75 (don't quote me on that -
it's just a guess, I know no more than you), that would mean it costs
just under 1 cent/K.  Is that a fair price?

How does Microsoft set their costs?

Suppose you hold the belief that all Macintosh System Software should be free.
Should it always be free?  We never, will, but suppose for argument's sake,
Apple decided to make A/UX the standard System Software.  40 Meg of software
and a stack of manuals several feet high.  Should it still be free?  If it's
free should Apple offer the free telephone support that millions of new
Mac owners have demanded?  Should it put all the manuals on an FTP server?
Should it defy AT&T license agreements and let users copy it from dealers?

Maybe A/UX is an extreme example.  What if Apple decided to do a System 8 or 9
or whatever that had all the features people in this news group and elsewhere
have been screaming about.  I guess it would take 2 to 4 years and end up being
about 10 Meg.  Who should pay for the development costs?  (Please
don't forget development costs.  I've been working on 7.0 for three years, and
had a great time, but I couldn't and wouldn't have done it for free.)  Should
the people who were clamoring for the features pay for them?  Should new Mac
users pay for them?  (That would NOT help bring down the cost of Macintosh
hardware.)  Should Apple employees pay for them with pay cuts?  Should
Apple shareholders pay for them?  Who pays for Microsoft's system software
development costs?  Hardware manufacturers?  The Microsoft applications groups?
End users who buy the shrink wrapped software?

You can flame my numbers and examples all you want (no, actually please don't
waste the bandwidth) but the questions remain, how should System Software
be priced, and who should pay for the development.  Some discussion on these
topics would be very interesting.


Bruce


===============================================================================
Bruce Jones                                                    bjones@apple.com
Applications Group                                      AppleLink:  BRUCE.JONES
Macintosh System Software 7.0 Team                                 408 974-3454
Apple Computer, Inc
20525 Marianni Avenue  MS 81BB
Cupertino, CA  95014
===============================================================================


-- 
===============================================================================
Bruce Jones                                                    bjones@apple.com
Manager, Applications Group                             AppleLink:  BRUCE.JONES
Macintosh System Software 7.0 Team                                 408 974-3454
Apple Computer, Inc
20525 Marianni Avenue  MS 81BB
Cupertino, CA  95014
===============================================================================

xdpq8@isuvax.iastate.edu (04/29/91)

Bruce,
	I have to say, once again that $99 for system 7.0\ with documentation
is NOT at all an unfair price. I am a student who has limited resources
but I'm going to save my pennies and go without other things to buy it.
It's like that for a lot of things you buy, each person has to decide for
him/herself what it is worth and then decide if they want to pay what
Apple is asking.  Those that don't can either go w/o or they can get the
disks and ask friends for help....
 
+------------------------------------------------------------------------------+
|Steve Fuller            |  Iowa        | I will choose the path that's clear. +
|                        |  State       | I will choose freewill.              +
|xdpq8@ccvax.iastate.edu |  University  |                        -- RUSH --    +
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gtephx (Mike Pflueger) (05/01/91)

In article <52131@apple.Apple.COM>, bjones@Apple.COM (Bruce Jones) writes:


 [good arguments regarding how System software should be priced deleted]

> Should it always be free?  We never, will, but suppose for argument's sake,
> Apple decided to make A/UX the standard System Software.  40 Meg of software
> and a stack of manuals several feet high.  Should it still be free?  If it's
> free should Apple offer the free telephone support that millions of new
> Mac owners have demanded?  Should it put all the manuals on an FTP server?
> Should it defy AT&T license agreements and let users copy it from dealers?
...
> about 10 Meg.  Who should pay for the development costs?  (Please
> don't forget development costs.  I've been working on 7.0 for three years, and
> had a great time, but I couldn't and wouldn't have done it for free.)  Should
> the people who were clamoring for the features pay for them?  Should new Mac
> users pay for them?  (That would NOT help bring down the cost of Macintosh
> hardware.)  Should Apple employees pay for them with pay cuts?  Should
> Apple shareholders pay for them?  Who pays for Microsoft's system software
> development costs?  Hardware manufacturers?  The Microsoft applications groups?
> End users who buy the shrink wrapped software?
...
> be priced, and who should pay for the development.  Some discussion on these
> topics would be very interesting.


Bruce brings up some very good points.

I'd like to add a few comments from a user perspective, and as someone who
is also in the hardware and software development business.  Please don't
take any of this as a flame, it's just my viewpoint for discussion.

I think the root of the user concern is the perception (implication?) that
when one buys a Mac, system software has traditionally been "free".  We paid
for the development costs AND a reasonable amount of support when we paid for
the hardware.

Put simply, users have come to expect it.  And now the rules appear to be
changing.

Apple also made the choice that they're in the business to sell HARDWARE when
they spun off Claris - "free", good, and regular system upgrades HELP SELL
HARDWARE AND KEEP THE MAC A VIABLE PLATFORM.  It also allows after market
developers to provide additional products and services which in turn also
sells more Macs. THIS IS WHAT MADE APPLE FROM THE BEGINNING - THE REALIZATION
THAT THE HARDWARE IS NOTHING IF YOU DON'T HAVE LOTS OF GOOD SOFTWARE TO RUN
ON IT.

Thus I think it is to Apple's advantage to provide "free" upgrades.

I don't think the expectation has been (or IS) free manuals or distribution.
We've come to expect that if we want copies of manuals and disks from Apple,
we should pay for their production and distribution costs - but not for the
software itself which has been distributed freely.

And we all know that one way or another, these upgrades aren't "free".
The end user obviously pays for the development.  Either we pay for them
up front with higher priced hardware, or we pay explicitly for each version
of the software (and thus lower hardware prices).

Certainly licensing fees must be paid from somewhere.  But this doesn't mean
that AU/X COULDN'T be distributed like other system software has been -
certainly it would sell LOTS of Macs if it was.

So I think some people feel that they are having the rug pulled out from
under them when they hear - JUST BEFORE THE RELEASE - that all these
new features they've been hearing about are gonna cost some more.

I upgraded from a Plus to a IIsi about 5 months ago - in anticipation of
7.0 - and I know that I'll be somewhat upset if I don't get a "free" copy
of at least the software.  Since 7.0 was originally announced as scheduled
to be released much earlier, maybe I should even get a "free" copy of the
manuals.

-- 
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kik@wjh12.harvard.edu (Ken Kreshtool) (05/01/91)

Regarding whether to get Sys 7 free (or cheap from a users group) versus paying
$99 for Apple's kit with manuals.

There is another alternative that no one seems to have mentioned yet, one that
has been very popular with HyperCard 2.0: Get the disks
at the best possible price, and then wait for someone to publish a
how-to-use-it book.  These books usually come out toot sweet and cost around
$25.  I suppose if you are really cheap or broke, you can stand in the
bookstore and read, er, browse.

I'll probably go for the Apple offering because it supposedly includes
HyperCard 2.1 and the user groups distributions doesn't (says BCS*Mac).

Ken Kreshtool
kik@wjh12.harvard.edu

ewright@convex.com (Edward V. Wright) (05/01/91)

In article <594@wjh12.harvard.edu> kik@wjh12.UUCP (Ken Kreshtool) writes:

>There is another alternative that no one seems to have mentioned yet, one that
>has been very popular with HyperCard 2.0: Get the disks
>at the best possible price, and then wait for someone to publish a
>how-to-use-it book.  

On that note, has anybody checked with the bookstores to see when
any new books on System 7 are coming out.  Especially books for 
programmers.  Mac Tech Journal published an excerpt from a book
called "System 7 Revealed."  I am especially interested in this
since APDA says that Inside Mac Vol VI won't be published until
"sometime this summer."

jas@ISI.EDU (Jeff Sullivan) (05/02/91)

In article <1991Apr30.171133.26801@...!asuvax!gtephx> pfluegerm@...!asuvax!gtephx (Mike Pflueger) writes:

>In article <52131@apple.Apple.COM>, bjones@Apple.COM (Bruce Jones) writes:
>
>Thus I think it is to Apple's advantage to provide "free" upgrades.

This is probably true, in some sense (as long as they keep CPU prices
up to pay for the tons of man-years they've spent on R&D).

>Certainly licensing fees must be paid from somewhere.  But this doesn't mean
>that AU/X COULDN'T be distributed like other system software has been -
>certainly it would sell LOTS of Macs if it was.

Do you real;ly think that the set of people who want to buy Macs and
the set of people who wouldn't now but would if UNIX were bundled is
at all sizeable?  If you want UNIX, there are plenty better platforms
than the Mac for less $$$.  If you want UNIX, why the hell would you
ever lean toward a Mac at all, unless you had to?  And why would you
ever want UNIX in the first place? ;-)

>So I think some people feel that they are having the rug pulled out from
>under them when they hear - JUST BEFORE THE RELEASE - that all these
>new features they've been hearing about are gonna cost some more.

As has been stated before, it appears that the software will continue
to be free, and the manuals will continue to cost, and there's nothing
new under the sun, except that this upgrade *may* be major enough to
"require" the manuals.

>I upgraded from a Plus to a IIsi about 5 months ago - in anticipation of
>7.0 - and I know that I'll be somewhat upset if I don't get a "free" copy
>of at least the software.  Since 7.0 was originally announced as scheduled
>to be released much earlier, maybe I should even get a "free" copy of the
>manuals.

Yeah, right.  Your anticipation should force them to give you the
stuff for free.  If I say I bought my Hyundai Excel with the
anticipation of the Sonata, does that mean I get one free?

jas
--
--------------------------------------------------------------------------
Jeffrey A. Sullivan		| Senior Systems Programmer
jas@venera.isi.edu		| Information Sciences Institute
jas@isi.edu                    	| University of Southern California

ewright@convex.com (Edward V. Wright) (05/02/91)

In <1991May01.164332.29426@convex.com> I wrote:

>Has anybody checked with the bookstores to see when
>any new books on System 7 are coming out?  

To answer my own question, in case anybody else is interested,
I just spoke to Taylor's Technical Books and found out "System
7 Revleated" (for programmers) should be out in June.  There
are also at three books coming out for System 7 users, the first
of which should be available in May.  (The publisher is apparently
holding on the release of the software.)

    

derek@leah.albany.edu (Cinderella Man) (05/03/91)

From jas@ISI.EDU (Jeff Sullivan) come these immortal words:
>Do you really think that the set of people who want to buy Macs and
>the set of people who wouldn't now but would if UNIX were bundled is
>at all sizeable?  If you want UNIX, there are plenty better platforms
>than the Mac for less $$$.  If you want UNIX, why the hell would you
>ever lean toward a Mac at all, unless you had to?  And why would you
>ever want UNIX in the first place? ;-)

I can think of several good reasons.  Unix is the most comprehensive OS
I've found, great at dealing with processes/jobs/multiple users, and has a
TON of software and support out there.  The Mac has the best interface I've
come across, besting every window system I've used (~a dozen).

OS and interface are NOT the same thing.  If I had a need for what unix has
to offer, I'd love a Mac face on it.  I've got a SPARC on my desk now,
temporarily until I get my IIci back (it's demoing at an expo).  I can
appreciate its design and uses, and I'd love some of those features in a
Mac environment.  I just can't afford it yet.


>Jeffrey A. Sullivan		| Senior Systems Programmer

						Derek L.
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markc@pro-angmar.UUCP (Mark Crump) (05/07/91)

In-Reply-To: message from jas@ISI.EDU

I think that the policy should be that anyone who purchased a Mac after a
certian date gets a free upgrade.  Plain and sinple, just like software
manufactures do.  Specially since they annunced the release date it is not
vaporware anymore.  I say anone who bought a mac after Janurary 1 get an
upgrade.  Even though I a member of a beta site, and am getting the thing
anyway, I suggest just getting the disks off  a Usergroup and buying Craig
Dunaloffs' book for 20 clams
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