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Eric Thomas <[log in to unmask]>
Mon, 19 Jul 1993 01:11:09 +0200
text/plain (107 lines)
On Sun,  18 Jul 1993  12:54:28 -0400 (EDT)  "Tansin A. Darcos  & Company"
<[log in to unmask]> said:
 
>That  is extremely  generous on  your part.  How much  money has  Educom
>gotten out of  licensing Listserv? Bitnet connections  wouldn't be worth
>10c without the Listserv and mailer capabilities. $2,000,000?
>$5,000,000? For  which, I think,  your share  was exactly nil;  and they
>didn't even want to consider contracting with you for further releases?
 
Please, let's stay clear of the dangerous mud-slinging tangent. First, it
should be noted that any benefits EDUCOM might have derived would be only
indirect. The US part of BITNET is run by CREN, which contracts EDUCOM to
provide a  number of services. I  doubt EDUCOM has much  influence in the
policy decisions  of CREN  and, since  CREN does  not contract  EDUCOM to
provide the  LISTSERV service, there  is no  reason EDUCOM should  try to
contract me  to offer it. Last  year, CREN collected $1,604,330  from its
members (plus interests,  late bills and other minor  items) and $878,909
were paid  to EDUCOM. The figures  are $2,426,776 and $912,411  for 1991,
the  previous statements  are probably  available but  I don't  have them
online. I don't know  how much is left once they have  paid the staff and
rent, but certainly nowhere near the  figures you mentioned. I don't even
know if EDUCOM is profit or non-profit.  Anyway, as far as I am concerned
EDUCOM is simply not involved here.
 
It is  fair to  say that  CREN has drawn  significant benefits  from free
access to LISTSERV.  Quite possibly seven figures. This was  one reason I
was upset at  the contents of the  RFP. But L-Soft's policy  is to forget
any possible offense  or personal problem that might  have existed before
LISTSERV became  a commercial  product. Not out  of weakness,  but simply
because there  is little point  in fighting over old  disagreements which
were, to a large extent, caused by  people who have now moved on to other
pastures. L-Soft  was certainly in a  position to convince EARN  sites to
pay  major  licensing  charges  to  upgrade from  LISTEARN,  and  with  a
performance improvement of  a factor of 15 on expensive  IBM hardware the
business case would be a piece of cake, but we felt it would be unfair to
make individual  sites pay  for mistakes  they had  little or  no control
over. Furthermore we felt that EARN and L-Soft stood to benefit from each
other and  really should be  working together.  So EARN is  now licensing
access to new versions of LISTSERV and LMail at a very advantageous price
- a price low enough to fit in  their very tight budget without any major
problem, and  which made the  politically loaded decision of  phasing out
LISTEARN pass  the board  painlessly. The  users benefit  doubly, through
access to better software and through  the removal of the "almost but not
quite  compatible" EARN  version of  LISTSERV, which  will decrease  user
confusion and make  it a lot easier to write  documentation. On the other
hand, EARN is giving L-Soft some money to help the development of the VMS
version of  LISTSERV happen  sooner, and  they will  maintain topological
tables which will  make it possible to extend the  DISTRIBUTE protocol to
the  Internet. We  benefit from  the improvements  to our  products, EARN
users benefit from better and cheaper services, and EARN benefits because
whatever makes its  users think they get their money's  worth is good for
EARN. Everyone  is happy,  and this is  a lot better  than a  LISTSERV vs
LISTEARN war,  which would have  brought L-Soft  more money in  the short
term but would not have had the  same user benefits (which L-Soft sees as
long-term business advantage).
 
I can't  tell you what  CREN and  L-Soft are going  to do because  we are
still negotiating (and of course  the negotiations are confidential), but
I can  tell you  that L-Soft  hopes to  reach the  same kind  of business
relationship  with CREN  that it  now  has with  EARN, and  that we  have
offered  similar low  prices to  make such  an arrangement  attractive to
CREN.  The alternative  is a  RFP-vs-LISTSERV  war from  which the  users
cannot  possibly benefit,  as L-Soft  would  have to  turn to  individual
members  for licensing  and the  issue  of "CREN  membership vs  LISTSERV
license fee"  would inevitably  be raised, with  the obvious  result that
many organizations  would leave CREN and  lose the NJE service  before an
Internet alternative is available. In fact, if CREN were to take a really
aggressive attitude  and directly  challenge L-Soft's  business interests
with the RFP, we could be forced to make offers of the type "50% off your
license  if you  drop your  CREN  membership", which  would be  extremely
counter-productive.  Because  the alternative  is  so  grim, I  am  quite
confident that an agreement will be reached.
 
>Did anyone even bother to offer you any thanks for your work?
 
Many people have, and in general  I seldom have problems with individuals
about this.  There will  always be  idiots to insult  you for  not having
implemented some gadget or other within  24h of their last flame, but you
quickly  learn to  ignore them.  Most  of the  problems I  had were  with
organizations.
 
>My advice:  charge *something*, even if  it is a ridiculous  fraction of
>the usual price. People don't respect that which they get for free.
 
That was one reason for turning LISTSERV into a commercial product ;-) We
expect to "charge" manpower rather than  hard currency. There is not much
we can do with  a small amount of hard currency that  people will be very
reluctant to  part with. It  will create hard  feelings and we  won't get
much  in return.  Manpower can  be put  to better  use, even  if all  the
development  work we  ever have  to do  is too  impractical to  locate in
another country. If we have an arrangement that says someone works for us
2 days a month in exchange of X  free licenses, we can send him around in
town to describe the benefits of LISTSERV to other universities. This can
be  an interesting  job, and  something  good for  that person's  career,
whereas we increase our market  share and potential future benefits, when
and if  the economy  gets better.  It is common  for top  scientists from
third world  countries to be  invited to do research  in the US.  If they
were used  to LISTSERV at  home, they will  demand LISTSERV in  their new
research  lab, and  we  will  make a  profit.  Similarly,  we may  locate
competent programmers  who are interested  in working for us,  or selling
our products to  corporations which, while not quite as  rich as US ones,
can afford our  license charges. There many  ways in which we  can make a
long-term profit with that approach. With  a $1k check covering an entire
country, we can maybe buy a new PC.
 
  Eric

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