Comments on: Deciding If Software Is Good http://www.symphonious.net/2007/12/14/deciding-if-software-is-good/ Living in a state of accord. Thu, 20 Nov 2008 16:21:51 +0000 http://wordpress.org/?v=2.6.3 By: Michael Krigsman http://www.symphonious.net/2007/12/14/deciding-if-software-is-good/#comment-139499 Michael Krigsman Tue, 25 Dec 2007 23:31:01 +0000 https://www.symphonious.net/2007/12/14/deciding-if-software-is-good/#comment-139499 On the point about revenue being an indicator of what the market wants/expects: we're specifically talking about enterprise software here, not software for small non-profits, for example. The market is large, and customers will pay for mission-critical software that does the job. If revenue doesn't serve as proxy for market interest and acceptance in this case, what measure could possibly work? Michael Krigsman ZDNet Blog: http://blogs.zdnet.com Twitter: http://twitter.com/mkrigsman On the point about revenue being an indicator of what the market wants/expects: we’re specifically talking about enterprise software here, not software for small non-profits, for example. The market is large, and customers will pay for mission-critical software that does the job. If revenue doesn’t serve as proxy for market interest and acceptance in this case, what measure could possibly work?

Michael Krigsman
ZDNet Blog: http://blogs.zdnet.com
Twitter: http://twitter.com/mkrigsman

]]> By: Asbjørn Ulsberg http://www.symphonious.net/2007/12/14/deciding-if-software-is-good/#comment-137602 Asbjørn Ulsberg Fri, 14 Dec 2007 13:57:34 +0000 https://www.symphonious.net/2007/12/14/deciding-if-software-is-good/#comment-137602 You are of course spot on and correct, Adrian. Saying that software is good because it's profitable is like saying just about everything Microsoft will ever include in their operating system will be good, because the operating system is profitable. The same goes for their Office suite. Are there any disagreements on whether Apple Keynote is better than Microsoft PowerPoint? Is PowerPoint really better than Keynote just because it's more profitable? I think not. Is Microsoft Windows Vista better than OS X because it's more profitable? How about Ubuntu Linux? I think not. Good software is not measured by price or profitability. Perhaps it is for the shareholders of the company developing the software, but not for anyone else. Why software is profitable and why software is good are two completely orthogonal issues. Sometimes they go hand in hand, sometimes they don't. You are of course spot on and correct, Adrian. Saying that software is good because it’s profitable is like saying just about everything Microsoft will ever include in their operating system will be good, because the operating system is profitable. The same goes for their Office suite. Are there any disagreements on whether Apple Keynote is better than Microsoft PowerPoint? Is PowerPoint really better than Keynote just because it’s more profitable? I think not. Is Microsoft Windows Vista better than OS X because it’s more profitable? How about Ubuntu Linux? I think not.

Good software is not measured by price or profitability. Perhaps it is for the shareholders of the company developing the software, but not for anyone else. Why software is profitable and why software is good are two completely orthogonal issues. Sometimes they go hand in hand, sometimes they don’t.

]]> By: Adrian Sutton http://www.symphonious.net/2007/12/14/deciding-if-software-is-good/#comment-137531 Adrian Sutton Fri, 14 Dec 2007 02:50:06 +0000 https://www.symphonious.net/2007/12/14/deciding-if-software-is-good/#comment-137531 anon, There's a big difference between making money and making a heck of a lot of money. Great software in a niche market can be profitable - usually because it has very low costs associated with it. However it won't compare to the amount of money great software in a big, rich market could make which is why revenue is such a poor way to compare software. To that extent, it makes no difference if the software is made as a business or a hobby or open source - it can still be great. The bottom line is that there isn't a good way to define quality, but sales is a particularly lousy way to define it. It's worth noting that twitter solves a problem - communication. It solves it in a unique way with debateable effectiveness, but it does solve a problem, however it probably isn't worth enough to it's users for them to pay for it. Advertising could be a way to monitize that stream though (solving the problem advertisers have of getting their message out which they're willing to pay a lot for). I doubt ad blocking software will ever be able to kill Google's revenue stream - it's too easy for them to adjust the way their ads are served so that it doesn't block it again. anon,
There’s a big difference between making money and making a heck of a lot of money. Great software in a niche market can be profitable - usually because it has very low costs associated with it. However it won’t compare to the amount of money great software in a big, rich market could make which is why revenue is such a poor way to compare software. To that extent, it makes no difference if the software is made as a business or a hobby or open source - it can still be great. The bottom line is that there isn’t a good way to define quality, but sales is a particularly lousy way to define it.

It’s worth noting that twitter solves a problem - communication. It solves it in a unique way with debateable effectiveness, but it does solve a problem, however it probably isn’t worth enough to it’s users for them to pay for it. Advertising could be a way to monitize that stream though (solving the problem advertisers have of getting their message out which they’re willing to pay a lot for).

I doubt ad blocking software will ever be able to kill Google’s revenue stream - it’s too easy for them to adjust the way their ads are served so that it doesn’t block it again.

]]> By: anon http://www.symphonious.net/2007/12/14/deciding-if-software-is-good/#comment-137530 anon Fri, 14 Dec 2007 02:38:22 +0000 https://www.symphonious.net/2007/12/14/deciding-if-software-is-good/#comment-137530 Oh and by the way, something like twitter doesn't remove pain. Thats why people will never pay for it, and will MOVE to another competitor if they start charging. One day investors will get sick of dumping money into things that don't actually produce a profit, and when that glorioous day comes people will realise the huge problems of web based services like it. While google can turn a profit at the moment, imagine a distruptive technology that destroys their revenue stream. All it would take is a global uptake of adblock plus, and google is dead. Imagine what would happen if mozilla included ABP by default? They won't of course (as this would kill their revenue stream) but it will happen one way or another (tivo, torrents anyone in another industry that relied on ads?), and everyone better have a plan B. Oh and by the way, something like twitter doesn’t remove pain. Thats why people will never pay for it, and will MOVE to another competitor if they start charging. One day investors will get sick of dumping money into things that don’t actually produce a profit, and when that glorioous day comes people will realise the huge problems of web based services like it.

While google can turn a profit at the moment, imagine a distruptive technology that destroys their revenue stream. All it would take is a global uptake of adblock plus, and google is dead. Imagine what would happen if mozilla included ABP by default? They won’t of course (as this would kill their revenue stream) but it will happen one way or another (tivo, torrents anyone in another industry that relied on ads?), and everyone better have a plan B.

]]> By: anon http://www.symphonious.net/2007/12/14/deciding-if-software-is-good/#comment-137528 anon Fri, 14 Dec 2007 02:27:14 +0000 https://www.symphonious.net/2007/12/14/deciding-if-software-is-good/#comment-137528 I think you forget that unless your business makes money its a hobby. People are willing to pay IF the product is good enough, see ipod, iphone etc. If your product is good enough, and doesn't just "solve problems" but "removes pain" then customers come running in droves. You are right on one point: it should be sales/customer/disposable revenue of customer. That way it would correct for market size and the customers revenue and produce a measure comparable between industries I think you forget that unless your business makes money its a hobby. People are willing to pay IF the product is good enough, see ipod, iphone etc. If your product is good enough, and doesn’t just “solve problems” but “removes pain” then customers come running in droves.

You are right on one point: it should be sales/customer/disposable revenue of customer. That way it would correct for market size and the customers revenue and produce a measure comparable between industries

]]>