wxPython Licence vs GPL
Martin P. Hellwig
mhellwig at xs4all.nl
Sat Nov 26 21:39:13 CET 2005
Steven D'Aprano wrote:
> I think you are over-estimating both the numbers and profitability of such
> niche software distributors, and misunderstanding the business models of
Coincidently, I worked at a software company making a "standard"
administration software for primary schools. Which concentrate on the
national market. Because this in the Netherlands, not such a big
country, the customer base is not that big.
So on a population of 17 million people there are about 7.500 thousands
primary schools, our market share was quit big we had 4.500 thousands
customers, there where "only" about 7 other competitive
products/companies in that market.
The software was sold in 3 separates modules requiring a yearly renewal,
the base module was required for all customers the other modules where
add on packages, the base module cost about 500 EUR, then there where
2000 clients for 350 EUR module and about 500 clients for the third 250
They also sold administration software for the academic market with
about the same annual income as that of the primary schools.
So for a niche market on a small user base using non-consulting
software, they had a quite profitable steady income.
Perhaps not the billions of dollars you expect from a software company
but for me and the 40 other employees it was enough to say that we
didn't over-estimated both the numbers and profitability of such a niche
software distributor and we sure didn't misunderstood the business model
of that. Unfortunately the profitable company was merged by the VC's
with 8 non-profitables companies because they had that this would make
them all profitable.
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