Re: [Sheflug] Linux versus the Other Stuff Debate

["Stephen J. Turnbull" <nospam [at] sk.tsukuba.ac.jp>]

>>>>> "Will" == Will Newton <will [at] misconception.org.uk> writes:

    Will> On Fri, 4 May 2001, Barrie Bremner wrote:

    >> However, as those of you that met me a last month's meeting
    >> might have noticed that I'm still a little skeptical about the
    >> current open source and/or .com business model - especially
    >> when combined with the crazy spending and overhiring by some
    >> companies.

Skepticism is justified, but the dot.coms are hardly different from
any other "growth industry."  High return, high risk, that's all.
There's always a lot of confusion over business models in a new
industry.

At least this time nobody is suggesting socializing it, the way we did
with the electric and phone companies.

    Will> Probably the only business in the world where you can have a
    Will> "business plan" that says "we're going to put all our
    Will> investors money in a big pile and set light to it".

Soviet-style state industry?  They managed to burn concrete-and-steel
factories.  ;-)

Selling software is hard, even if you're Microsoft.  If you abandon
patent and copyright monopolies, it's not surprising you're left with
a tough time coming up with a traditional business plan.

Someday someone will figure it out, we'll all wonder why we didn't
think up something so obvious and get rich, and the market will
settle down.  In the meantime, it's gambling.

    Will> The fact that most VC money is arranged by peoples fathers,
    Will> uncles etc. putting in a good word, and it's amazing there
    Will> haven't been fraud charges brought.

Haw!  Another urban legend.  At least on either side of the Pacific.
Dunno how the "old boy" network and the ENArque web works on that side
of the Atlantic.

No question, connections and networking are crucial.  But VCs don't
just give money away based on personal connections.  That just gets
you in the door; you have to have ideas and persuasive skills to get
money.


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