Malcolm Gladwell’s review of Anderson’s book reminded me of yr post here. Here’s the review..

http://bit.ly/1rUoVn

Good points but I think there’s something which is also important in discussing free and that’s ‘time’.

We’re facing a tricky decision in coming up against a competitor in a nascent mkt which we’ve developed a product for. It’s not a consumer mkt, this is middleware.

Our main (BIG) competitor offers a free service, funded by the parent company with a long term business plan where revenue flows from creating better ways to find things on the web. The pay back is long term. Companies only have to allow their data to be used and they get a free service… and most accept this because the short term gain trumps the long term (potential) cost. So ‘free’ isn’t really free here at all it’s just not in a timescale that most people care about.

If things don’t go to plan for us, another option is to open up the code, release the software under a GNU General Public license and charge for the service ‘wrapper’ around it. But so can other people and any potential benefit we gain from the knowledge of the code doesn’t last long enough to justify the upfront costs of developing the software (hence reducing the incentive to innovate next time around). That means labour and that means we can’t charge for when we don’t work, which sucks.

James.

Simply “reinflate” the housing bubble as necessary using that “brand new” mortgage product (brought to market by the “fine folks” on Wall Street) available everywhere at any Bank or Savings & Loan of your choice beginning 1 May 2009.

Now introducing the “California Twister” — the all inclusive worldwide problem-solving* mortgage. (Also known as the “Gordo” in the UK)

* Simply “import” a Japanese-style “three-generation, 100 year” mortgage with an added California twist. Financially “reengineer” it into a “four-generation, 120 year” mortgage product to be hereafter known as the “California Twister.” (An advanced financial mortgage product developed for the new century). For truly stubborn existing foreclosure cases (or for those who wish to obtain home price/income ratios mortgages of at least 20:1; as in “don’t let a mere $50K annual family income prevent you from living the life you aspire to in the $1M+ home of your dreams”). Instead simply “step-up” and utilize the “ultimate” in currently available mortgage products: the “California Twister-II (or Gordo-II).” (A “five-generation, 150 year” “variant” to be shared with your children, grandchildren, great grandchildren, and great-great grandchildren). (Keeping it all in the family as a legacy mortgage; “the family that pays together, stays together” — don’t you agree?)

All UK and worldwide housing bubble and mortgage-related problems promptly solved. That wasn’t so difficult to effect — now was it?