Re: Thoughts on the book: DEC is dead, long live DEC

In article <L4GLdBZupjb7@xxxxxxxxxxxxxxxxxxxxxxxx>, koehler@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx (Bob Koehler) writes:
In article <44FF28C5.41F0BE69@xxxxxxxxxxxx>, JF Mezei <jfmezei.spamnot@xxxxxxxxxxxx> writes:

Point is that since about 1990, it was obvious that TCPIP would become
the standard for networking. DEC should have made TCPIP part of VMS
back then. Perhaps just a "NETWORKING" PAK to enable both TCPIP Services
and DECNET. Or just get the networking software to check for a valid VMS licence.

We have a huge number of computers that are not networked, don't need
to be networked, and will not be networked. Why shouldn't we be able
to save money by buying an OS without a network?

Just so.

The vendor has a problem. He has a fairly large outlay in fixed
development costs. But his marginal costs are low.

If the vendor prices uniformly at or near his marginal cost he improves
his volume, but those sunk development costs kill him.

If the vendor prices uniformly high the lost volume kills him.

He needs a way to segment the market -- charging lower prices to people
who are price-sensitive and charging higher prices to people who are
price-insensitive. That way he gets to use more of the area under
the price/volume curve than just a single rectangle.

One standard way to proceed is to sell reduced-functionality product
at lower prices.

You charge less for a system shipped without TCP.

Or you charge less for epoxy in the backplane.

Or you charge less for fares purchased well in advance for round trips
spanning a non-holiday weekend in seats with minimal legroom.

Or you sell a store brand in unattractive packaging on the cheap.

Or you distribute coupons and advertise rebates.

Those marketeers are not always without insight.
.

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