> > (This is really an accounting and/or marketing issue - I mean really all
I
> > am asking for is mm (or whoever) to finance my server licensing over two
> > years, include the upgrade subscription fee, and some early withdrawal
> > insurance. and maybe throw in some financing and administration fees. I
> > mean, it's just math.)
>
> Eric, this simply won't give them the cash flow necessary to operate the
> corporation at a profit margin appropriate for their industry. Without
> that, their banks will not lend them money at favorable terms
Then why is the software industry as a whole trying to transition itself
into subscriptions? Are you arguing that if Microsoft's new plans for
subscription based services are successful, banks will stop lending them
money?
First software companies gave away the software upgrades. Then, as new users
began to taper off and everyone was upgrading, they started charging for
upgrades. Now customers are skipping upgrade cycles (e.g. Microsoft Office
2000) so companies are trying to sell subscriptions. That way, you will
never own the software so you will always need to pay them.
It wouldn't surprise me in the slightest to see Macromedia head down the
same road.
> Then the death march begins in earnest. They don't even have to _lose_
> money during a fiscal quarter; they just have to _fall short_ of
> profitability predictions. Once this happens, their stock loses value
> because everyone sells in favor of some other stock. Then the total value
> of the company dumps, and the banks call their loans (if callable), but at
> the very least lend no more money because there is no value on the books
to
> back it up.
>
> Then everything just implodes financially from there. We simply cannot
> allow that to happen.
A little dramatic, eh? How's your company fairing the tech slowdown? :)
Benjamin S. Rogers
http://www.c4.net/
v.508.240.0051
f.508.240.0057
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