I appologize ahead of time if it is inappropriate to continue to offer
feedback to Jeff Whatcott in this forum.  I wanted to make a point while
Jeff has his ear to the ground, then I will do my best to stay off line
<G>.

I once worked for a prestigious engineering firm.  In the late eighties,
a whole new market developed, environmental engineering.  The
environmental department grew quickly and became the leading revenue
generator for the entire company.  However, special new expense costs
were associated with the environmental engineering.  They were foreign
to the rest of the company and the manager's, in their wisdom, created a
special surcharge for their CLIENTS.  They explicitly stated on their
invoices that the client was required to pay 1.5% of the labor as an
environmental fee.  Within the company, everyone was happy.  It solved
the problem among the INTERNAL profit centers.  It was a solution
created to solve an internal problem.

However (and this is the point of this email), it totally backfired. Our
best clients, our bread and butter clients absolutely refused to pay the
fee.  To the shock of the managers, the clients were ready to walk, and
walk quickly.  The amount was not the issue.  The clients perceived that
the costs were a cost of doing business for the engineering firm and
that it was inappropriate for them to pay it as a surcharge.  Nothing
changed the client's preceptions.

I agree with several of the CTO's comments in this forum, that
Macromedia must create sufficient revenue to expand their products and
their market.  Without success, CF will die.  But please stay sensitive
to cost perceptions in the market and aware of internal issues vs true
value offered to the client.  IMO, there are two things that will stop
CF dead in its tracks:

1) If we (developers who sell CF to clients who pay for CF development)
cannot manage our client's perceptions of justified server costs, CF is
dead.  This is independent of ANY justification Macromedia has with
regards to their internal revenue generating schemes.  The client's
perception is king, reality.  As strange as it seems, clients will walk
over a small server fee, regardless of how much they are paying for
development.  It's weird, but it's real.

2) The CF server is the engine.  Everything else is hooked to the
engine.  Macromedia must satisfy the needs of hosts offering shared
hosting, CF developers, and the bill-paying client when it comes to the
server.  ALL parties' needs must be satisfied.  This is the challenge,
because there are so many sensitive issues around the server.  The rest
of the product issues will take care of themselves over time.

In summary, we need to go further than listening to developers.  We need
to be listening very carefully to the perceptions of the bill paying
client.  They will make the final choice and decision. Thanks.  I'll
stay offline now.  Back to coding and real work...
--
Eric Root


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