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From Roberto Galoppini <rgalopp...@geek.net>
Subject Re: $21 million per day
Date Thu, 07 Feb 2013 10:00:00 GMT
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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