[Asterisk-Users] Cost of IP Phones, or Isn't It Just Software?

[Jay Milk]

I don't think I was missing the point.  Hardware and software
development are very much the same -- In my original proposal, I
suggested a type of communal development -- engineers would receive a
share of the company proportional to the time they donated.  I have done
this type of development on several projects before, and have always
more than recouped my initial investment.  Consider it open-source with
a business plan.  However, in addition to development cost, hardware
carries a high up-front cost for the first production run, while
software has virtually no media cost.

Secondly, I didn't consider what you wrote a dig at my business, since
you misread my first post:  I didn't say "I can do this cheaper", I said
"I can do this cheaper AND BETTER".  Our software provides the same core
functionalty as the legacy systems, but presents that functionality in a
manner that is much more user-friendly.  Above that, we add about 200%
more functionality than the legacy systems.  Would we have done this
without the existing systems?  Probably, as the need was for a usable
front-end with some added functionality; we just chose to include core
functionality.

I feel this is getting off-topic... Sorry.

> -----Original Message-----
> From: Andy Powell [mailto:andy at beagles-den.demon.co.uk] 
> Sent: Thursday, June 17, 2004 3:34 AM
> To: asterisk-users at lists.digium.com
> Subject: RE: [Asterisk-Users] Cost of IP Phones, or Isn't It 
> Just Software?
> 
> 
> 
> On 16/06/2004 at 22:53 Jay Milk wrote:
> 
> >You're correct -- I believe I pointed out in my original post that 
> >there is a $200+ difference between a cordless Cisco with/without 
> >software. And that's plain ridiculous.  Plus, the phone alone isn't 
> >worth $500 in hardware -- so we're obviously dealing with GREED here.
> >
> >My knee-jerk response to such business tactics always has 
> been to do it 
> >better and cheaper.  Six years ago, I was talking to IT personel in 
> >industry "X".  There were two established mainframe 
> solutions in that 
> >industry serving 80% of the market, costing $50K-$75K 
> start-up cost per 
> >location, plus $1K+ per seat.  Never mind the $10K-$15K monthly 
> >"maintenance" cost.  Never mind that everyone had to be able 
> to work a 
> >terminal with a lovely amber on black, text-based "GUI".
> >
> <snip for brevity>
> 
> I think you're missing the point. When you develop hardware 
> or software you need to recoup the cost of development (the 
> period in which you aren't selling anything, so not making 
> any money). Now Cisco has it's fingers in many pies so they 
> aren't going to suffer to much from that now, but they do 
> have to fund development.
> 
> Secondly, Cisco don't really care if their phones are out of 
> your price range, they are typically sold as part of a 
> solution costing 10's of 1000's or 100's of 1000's of 
> USD/GBP/EUR and (most probably) with big discounts.
> 
> Thirdly, If I make a device at a cost of $5 and sell it for 
> $500, some people will buy it, up to the point where someone 
> builds a similar device and sells it for $150 ...You have a 
> choice. companies are not charities, they do this to make 
> money.  This is what we call capitalism.
> 
> I don't want to dig at your business, and this isn't intended 
> to but.. what you did is look at what was already on offer 
> and it's costs, how it worked etc and built a cheaper 
> solution. The reason you could do this is because you had the 
> exposure 
> to the 'system' as was.. i.e. You looked at it and said 'I 
> can do that cheaper' but without that original system you 
> probably wouldn't have. 
> 
> One final point... There are some companies that have this 
> weird feeling that anything under a certain amount must be 
> cheap and nasty and not work properly. These people are fools 
> imho, but they do exist...and they wont buy an cheap phone, 
> they'll buy an expensive phone, regardless of it's ability... 
> as we've seen recently some governments will even buy 
> helicopters that can't fly in fog or where it's sandy for 
> silly money...
> 
> Now I feel dirty... 
> 
> 
> Andy
> 
> 
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