Just had a very entertaining discussion on Twitter with my colleague Rick Mans about the definition of Cloud Computing: whether the pay-per-use model is an essential part of this cloud thingy yes or no. Rick ended with a nice reply:
I know I'm taking it now a bit out of its original context (but that is also as a punishment to Rick for his hideous background :-p) but I'd like to disagree with that. "Free" sure is a business model and you can get incredibly rich by adopting it...
Whether you can or cannot enjoy Monty Python is just a matter of taste, but if you do, go check the Monty Python channel on YouTube to check some content. With 74.000 subscribers and 1.7 million channel views you'd probably think that it eats away of the Monty Python DVD sales. Why pay for it if you can see a lot of it for free on the internet?
An article on /film tells a different story: sales of Monty Python DVD's raised with 23.000 % and reached the number 2 spot on Amazon's best selling list!
I beg your pardon? How is it possible that even by giving away everything for free, you still generate loads of sales? Apparently by triggering the interest of people, by letting them savor the high quality of their productions, by treating the consumer with respect (I'm sick and tired of reading that piracy is a crime when I am in a movie theater, I paid for the ticked damned!) and by putting links to an online store where you can buy their DVD's, they did the trick.
Just wondering how this could be applied to the software business...
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Lee Provoost is an emerging technologist with a focus on cloud computing strategy and ERP+ lead at Capgemini. You can follow his ongoing stream of thoughts on Twitter http://twitter.com/leeprovoost.
Wanna get rich? Give away everything for free!
L. Provoos
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and let's not forget the Radiohead example - <a href="http://news.bbc.co.uk/1/hi/entertainment/7037219.stm" rel="nofollow">http://news.bbc.co.uk/1/hi/entertainment/7037219.stm</a>
@Jonathan if you can enjoy Radiohead, check this music mashup Jaydiohead (http://www.jaydiohead.com/), a free downloadable CD with Radiohead songs that are mixed with music from Jay-Z. Surprisingly good and as a Radiohead fun, triggered my interest in Jay-Z songs!
Dejavu. Read Chris Anderson's insight on "Free" economy:http://www.wired.com/techbiz/it/magazine/16-03/ff_free (got this recommended in a comment by Giovani Spagnolo on <a href="http://www.capgemini.com/technology-blog/2008/12/tech_predictions_2009_open_is.php)" rel="nofollow">http://www.capgemini.com/technology-blog/2008/12/tech_predictions_2009_open_is.php)</a>
This is already being applied to the software business for a long time. It is the business model of open source. The idea is that you sell services rather than technology. The technology "just" provides the means for rendering services. You also see this with mobile communications operators. You get your device + software for free, but you pay for the service of using the operator's network. You also see this happening with printers. The printers get cheaper and cheaper. Dell had already been practically giving away printers combined with a subscription to a service for supplying you with toner or ink cartridges. It is like Chris Anderson says in his article about the economy of $0: the money is not in things that last, but in the things people waste (like razor blades).
> Just wondering how this could be applied to the software business...
I is already applied. Just one example, read recently in the news:
A guy from Sun declared that since they opensourced their softwares, they sold more licenses in a year than in the previous 10 years!
Giving it away from free made a lot of customers buy it from them.
I is already applied. Just one example, read recently in the news:
A guy from Sun declared that since they opensourced their softwares, they sold more licenses in a year than in the previous 10 years!
Giving it away from free made a lot of customers buy it from them.
Followinf my previous comment, here is the link to the article (in French) where Simon Phipps from Sun says "the more you give a software away for free, the more people are ready to buy it from you":
<a href="http://www.01net.com/editorial/401324/simon-phipps-(sun)-plus-vous-donnez-un-logiciel-et-plus-on-est-pret-a-vous-l-acheter-/" rel="nofollow">http://www.01net.com/editorial/401324/simon-phipps-(sun)-plus-vous-donnez-un-logiciel-et-plus-on-est-pret-a-vous-l-acheter-/</a>
<a href="http://www.01net.com/editorial/401324/simon-phipps-(sun)-plus-vous-donnez-un-logiciel-et-plus-on-est-pret-a-vous-l-acheter-/" rel="nofollow">http://www.01net.com/editorial/401324/simon-phipps-(sun)-plus-vous-donnez-un-logiciel-et-plus-on-est-pret-a-vous-l-acheter-/</a>
@mark By the way Anderson's article was re-published, this time on WSJ : <a href="http://online.wsj.com/article/SB123335678420235003.html" rel="nofollow">http://online.wsj.com/article/SB123335678420235003.html</a> The thing is taking traction...
@mark By the way Anderson's article was re-published, this time on WSJ : <a href="http://online.wsj.com/article/SB123335678420235003.html" rel="nofollow">http://online.wsj.com/article/SB123335678420235003.html</a> The thing is taking traction...
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