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From Sally Khudairi ...@apache.org>
Subject Re: $21 million per day
Date Thu, 07 Feb 2013 11:14:04 GMT
Beautiful. Thanks so much, Roberto. This is hugely appreciated!

Cheers & chat soon,
Sally
 



>________________________________
> From: Roberto Galoppini <rgaloppini@geek.net>
>To: dev@openoffice.apache.org; Sally Khudairi <sk@apache.org> 
>Cc: Dave Fisher <dave2wave@comcast.net>; ASF Marketing & Publicity <press@apache.org>;
"marketing@openoffice.apache.org" <marketing@openoffice.apache.org> 
>Sent: Thursday, 7 February 2013, 5:00
>Subject: Re: $21 million per day
> 
>On Wed, Feb 6, 2013 at 9:58 PM, Sally Khudairi <sk@apache.org> wrote:
>> 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.
>
>Sally, happy to spread the news via SourceForge and our channel media
>if you wish so.
>
>Roberto
>
>> 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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