[Asterisk-Users] Prices of g729 codec

[trixter aka Bret McDanel]

On Mon, 2006-06-05 at 09:49 -0400, Andrew Kohlsmith wrote:
> On Saturday 03 June 2006 16:57, trixter aka Bret McDanel wrote:
> > but $10 only gets you one license, what if you are vonage sized and need
> > to support a million customers?  What if you accept that you can settle
> 
> If you are Vonage and need to support a million customers I will bet you are 
> not transcoding a million conversations on regular PC hardware.  You will 
> have AS5300/5400 boxes or MaxTNTs, which you have already paid WELL MORE than 
> $2M for, which INCLUDES the AudioCodes patent license for g.729.
> 
> You can't avoid it and stay legit.  Sorry to burst your bubble.
> 

my bubble wasnt bursted as you proved my point. Thank you for proving
that for me so I didnt have to.  I was responding to the comments that
said it was only $10 for a license, and not any comments on larger
entities.  


> > for a 5:1 ratio, then its only 200,000 or $2M.  Just for codec licenses,
> > not to mention all the other costs of being a business.  What if you are
> > smaller than vonage, say 10k channels in use, then that smaller entity,
> > probably without the hundreds of millions of VC that vonage got you
> > would have to come up with $100k.  Still more than $10.
> 
> Again, 10k channels you'll have a half dozen MaxTNT boxes terminating DS3s.  
> Your fixed costs will already be significantly higher and that little $10 
> license fee is included in that.
> 
Its not $10, which also goes along with something else I mentioned
elsewhere.  Digium charges $10 but the max cost for a g729 license is
about $1.25.  It goes down to about $0.10/license in quantity.  As such
it doesnt add a whole lot to the cost of the device once the initial
code is in place (as that development does have cost since the license
fee doesnt cover any implementation, only the right to sell that
implementation).

And again to clarify, since this was aparently lost somewhere, I was
responding to the mentality that everyone is a home user and its only
$10 for a license and that is all anyone ever needs to pay.  You have
proven me right, thanks again for that.  When you get out of the home
user mindset the cost goes up dramatically and the argument that I
responded to that the cost isnt that high at $10/license was invalid,
even though you seem to be saying that it is that same cost, which
anyone who really knows anything about the licensing knows that isnt
true.


> > If you are going to bring businesses into it, at least accept that a
> > business would most likely pay more than $10 for their licensing needs.
> 
> Nonsense.  The license fee that Digium charges is for onesie-twosie stuff.  If 
> you're making a real go of this as a business you will be paying that patent 
> license fee either through Digium (if you're transcoding on PCs, in which 
> case you are either doing something different or you're just plain stupid) or 
> you are paying a smaller patent license fee which was included in the price 
> of the hardware on your NAS equipment.
> 

My point again, thanks for the recap.  The $10/license fee outside of
the home user market is what I was contesting.  Why do you keep proving
my point in such an argumentative way?


> > no its not that they want quantity becuase they will sell just one
> > license, they only want to deal with people that implement the systems
> > not the end users of the system.  They claim the reasoning for this is
> > to make it easier for end users to know that they have licenses -
> > basically if you have it you are licensed.  Even if that isnt the case.
> > Check www.sipro.com for more info on g729 licensing.
> 
> It's always easier to work with businesses and deal with quantity than it is 
> to deal with the public or end customer and all the hassles with that.  I'm 
> positive that AudioCodes doesn't want to staff a customer service department 
> to deal with Joe Sixpack who's cousin's friend's son "is a computer whiz" and 
> hooked up this "phone over teh intarweeb" thingie for him but he just can't 
> it working perfect.

I never said they did, I replied to the notion that $10/license isnt
that much and people should just pay digium because we owe them for beta
testing the software for them that they sell commercially.  I used a
specific example designed specifically to show that the $10/lciense fee
could actually be a considerable sum instead of only $10 which is what I
replied to.  I am now begining to think that you didnt follow the thread
or even read what I replied to.  Out of curiosity do you read slashdot?


-- 
Trixter http://www.0xdecafbad.com     Bret McDanel
Belfast IE +44 28 9099 6461    DE +49 801 777 555 3402
Utrecht NL +31 306 553058      US WA +1 360 207 0479
US NY +1 516 687 5200          FreeWorldDialup: 635378
http://www.trxtel.com we pay you to terminate calls with us!
-------------- next part --------------
A non-text attachment was scrubbed...
Name: not available
Type: application/pgp-signature
Size: 189 bytes
Desc: This is a digitally signed message part
Url : http://lists.digium.com/pipermail/asterisk-users/attachments/20060605/7671d086/attachment.pgp