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From Sally Khudairi ...@apache.org>
Subject Re: $21 million per day
Date Wed, 06 Feb 2013 20:58:11 GMT
Hello Dave --great to hear from you, and with a wonderful subject :-)

I'm happy to help, and can work with both Rob and Don (and whomever else would like to participate)
on getting something formal out the door.

Is there a timeframe in mind? Next week, I presume?

Thanks in advance,
Sally
 



>________________________________
> From: Dave Fisher <dave2wave@comcast.net>
>To: dev@openoffice.apache.org; ASF Marketing & Publicity <press@apache.org>

>Cc: marketing@openoffice.apache.org 
>Sent: Wednesday, 6 February 2013, 15:54
>Subject: Re: $21 million per day
> 
>Hi Sally,
>
>Please see this message thread: http://mail-archives.apache.org/mod_mbox/openoffice-dev/201302.mbox/%3CCAP-ksoiJx5QqRvAQpHTJJ2_VasPCji9gTi4R3PH8bg_ntwkJ9A%40mail.gmail.com%3E
>
>Rob is working on a blog post, but I think that this is something worthy of an ASF press
release as it shows substantial value provided to the public.
>
>Thanks and Regards,
>Dave
>
>On Feb 6, 2013, at 12:42 PM, Rob Weir wrote:
>
>> On Wed, Feb 6, 2013 at 8:43 AM, Rob Weir <robweir@apache.org> wrote:
>>> Yes, yes, we're a non-profit organization.  We don't charge for Apache
>>> OpenOffice.  We don't pay developers.    But we still do produce
>>> something of value, and that value can be estimated.
>>> 
>>> People need office productivity software.  The main alternative to
>>> OpenOffice is Microsoft Office, perhaps the "Home and Student"
>>> edition.  The latest version (2013) sells for $139.99 on Amazon.  This
>>> is for the downloadable version.
>>> 
>> 
>> So I'm thinking more on this, and there is an assumption here that the
>> price I pay for Office in the US is the same as anyone else pays
>> around the world.  But this is unlikely to be true.  This is a classic
>> example of where the fixed costs are in the development and are high,
>> and the variable costs are in the media and distribution and are very
>> low.  So a global vendor's optimal strategy is to adjust the pricing
>> country-by-country or region-by-region, to maximize their profits.
>> They can drop the prince in some countries and raise it in others
>> based on ability to pay.
>> 
>> I'd love to have some help exploring the magnitude of these
>> differences, to see if they are significant.  Let's use the price
>> Microsoft quotes for "Home and Student 2013".  We want the 1PC
>> perpetual license, not the per-year subscription price.
>> 
>> Start from here:  http://office.microsoft.com.  I had to then go to
>> "Products", "For Home" and "Learn more".
>> 
>> When I check the US price I get $139.99
>> 
>> When I check the German site (http://office.microsoft.com/de-de) I am
>> quoted 139,00 €.  That is $188.04 today.
>> 
>> When I check the Australian website I am quoted $169.00 which is $174.42 USD.
>> 
>> The Russian website quotes 3499.00 rubles, which is $116.30.
>> 
>> So I'm seeing some higher and some lower.  Does anyone see pricing
>> that is outside of the range USD 116.30 - 188.04 ?
>> 
>> This complicates the analysis, but I don't think it changes the story much.
>> 
>> -Rob
>> 
>> 
>> 
>> 
>>> We have averaged 153K downloads per day of Apace OpenOffice over the
>>> last week.  That is an average value to the public of $21.5 million
>>> per day.  Or $7.833 billion (7.833 thousand million) per year.
>>> 
>>> To put that in perspective, here are comparable annual sales figures
>>> for some familiar companies:
>>> 
>>> -- Campbell Soup Company:  $7.882 billion
>>> -- Royal Caribbean Cruises:   $7.657 billion
>>> -- Mastercard, Inc:                $7.391 billion
>>> -- OfficeMax:                        $7.094 billion
>>> 
>>> 
>>> So we're providing tremendous value to the public.  We should be proud
>>> of what we've accomplished over the past decade.
>>> 
>>> Note:  We could certainly debate the exact value provided to users.
>>> Determining what a user would do if they did not get AOO for free is
>>> tricky.  But the logic above is similar to how the BSA estimates
>>> losses to Microsoft from software piracy.  They assume that the person
>>> who pirates Office would buy it if they did not pirate it.  So it
>>> seems fair to use that same logic to estimate the value provided to
>>> users by a legal free alternative like Apache OpenOffice.
>>> 
>>> Regards,
>>> 
>>> -Rob
>
>
>
>
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