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About the Author
Dennis Forbes Dennis Forbes is a Toronto-based software architect. While focused primarily on the .NET and SQL Server worlds, Dennis frequently ventures outside of this comfort zone into game development and image processing. He has been published in several industry magazines, has been quoted in the Wall Street Journal and has been interviewed by NPR.

He is a vice president and lead software architect at an innovative New York City hedge fund back-office services firm.

Dennis has been working on solutions for the financial, telecommunications, and power generation markets for over 15 years.




The Feed Bag

 
Wednesday, October 12 2005

I am a huge fan of Flickr.

I love the Lemonade-out-of-Lemons domain name - you just know that they sat there with Godaddy, punching in every combination until a misspelling finally came back as available: Nowadays people don't decide upon a business name and then try to find a correlating domain. Instead they check out random or loosely correlated domain availability and compromise. yafla had just such an origin (though it has really grown on me since).

I love the simple interface design of the Flickr website. I love the features (intuitive "Web 2.0" features like in-place edits of titles, captions, and so on, coupled with massive capacity and bandwidth with a remarkably liberal usage policy. Even on the desktop Flickr is a winner, with a simple yet powerful resize & upload utility that makes incrementally populating one's online photo archive a breeze).

I love occasionally browsing through some of the beautiful photos uploaded by other users for a bit of entertainment and inspiration. I love the ability to combine photos into sets. I love the distributed keyword method of loosely categorizing photos.

I especially love the way that you can set relationships to other people, allowing me to limit certain photos (such as those of my children) to family, other photos to friends, and so on. While I don't use it to build new cyber-relationship networks, I do find it worthwhile as real-world friends and family join the service (mostly at my incessant urging. I don't spam out emails full of pictures of my kids anymore, but instead upload to Flickr and provide access for the appropriate people. If they're interested, they can look. If they're not then at least I haven't filled their inbox quota).

The Road

If Flickr keeps going with the current philosophies and designs, it will continue to be a winner. Its competitors will have a really tough time doing something better, unless they start sending out cheques to users for using their services. If there was one possible weakness in Flickr's armour, it is that its competitors could use feature-rich desktop photo indexing software to kickstart their web venture.

I am not Flickr's optimal customer, however.

A large selection of llama inspired gifts, jewelry, art, collectibles and stuffed animals from Nose-N-Toes. Com.

While I use it to store and share my photos, I never click on ads (not only are they something I naturally tune out anyways, the keyword correlations makes for some really ridiculous impressions. I recently uploaded a picture of a llama at a country fair I visited. Now I'm getting ads selling llama goods and services), and the stickiness of the site is limited for me. Instead of uploading my photos and then participating in late night discussions with other amateur photographers, oohing and ahhing about each of their photos and hoping for the same in return, I'm very utilitarian in the way I use the site. My relationship network is not built in Flickr, or on the online world, but instead I crystallize my real-world network in Flickr.

This interests me because the business model of a large number of sites, particularly "Web 2.0" sites, rely upon a considerable amount of stickiness - Not only will you visit, but you'll hang around. Just like television, these sites hope to draw you in for a period of time under the premise that not only are you more likely to see some revenue generation that interests you (e.g. ads), but you're also more tightly bound to that community.

Time is finite, however. I've discarded countless web ideas because while the services might be utilitarian and useful for some needs of some people, they were too marginal to realistically charge a fee, yet there was no way I could rationally establish enough stickiness (you can only create discussion groups about so many things).

  Blogging   IT 
Tuesday, October 11 2005

You recently released some software - Banana Crop Foundation Server 2005(TM) - which allows users to plan, track and report on their banana crops, improving their operational efficiency measurably. You have some competitors in the space - some even inexpensive or free, several of them open source - but they aren't nearly as comprehensive or intuitive as yours.

Sales are brisk and times are good. While you're charging a fairly hefty licensing fee, the price is small compared to the benefits your software brings to your users (users whose profit margins increase because their competitors are still doing things the old-fashioned way). Congratulations! It is an enviable position for an ISV to be in.

Crawford Lake

Things aren't all puppydogs and lollipops, however. You've heard through the grapevine that many of the smaller banana producers have taken to your software, but finding your fees too high they've resorted to pirating it.

Annoyed by this "unmaterialized revenue", you do some number crunching and find that they couldn't afford your software anyways. At least not at a price that would make it worth your while. You also know from impromptu surveys that they'd just use the free stuff anyways if push came to shove.

What should you do? Should you super-size your copy protection? Should you pursue legal options against these miscreants? Are you really losing anything given that these non-paying users wouldn't buy your software anyways?

This is a very interesting software positioning and economics question, and it isn't nearly as clear-cut as it appears to be at first glance. The typical reply many would come back with is that "they wouldn't be paying customers anyways. Be thankful for the free advertising and look the other way". Others would say that you should provide a gratis or very low cost "small producer" version that would give these producers a leg-up: Maybe one day they'll grow and become a major customer.

The problem with that line of thinking is that it overlooks the core competitive advantage that your software brings to your paying customers

The problem with that line of thinking is that it overlooks the core competitive advantage that your software brings to your paying customers: Each user - legal or not - is being viewed as an island rather than a rich ecosystem that feed off of each other. For instance if every banana producer has the software, then Big Co has effectively gained no advantage buying your software, and in many ways it is now coming at a net loss (because they're paying for software that merely puts them on an equal footing with their competitors. Competitors who are using it for free).

You can see this sort of piracy and price positioning quandary in many places. The small graphics designer saves up enough to buy a copy of Photoshop CS, yet instead of gaining a professional advantage, he's merely even with countless competitors who just downloaded it from a torrent. Similarly, from a global perspective many large software companies overlook software piracy in the developing world, or they offer their wares at a substantial discount, yet what happens when all of their high-paying development shops, paying tens or hundreds of thousands in licensing fees, close up, unable to compete against the coding dens running their entire infrastructure with marginal software overhead?

In mainstream culture, where to many it is a fight to keep up with the Joneses, the same sort of thing occurs with media piracy - if two kids get an allowance, and one pirates a copy of the latest cool CD and spends his allowance on a cool T-shirt, and the other instead spends his money on a legal copy of the CD, the latter is culturally a loser - he is falling behind the Joneses. Unless there is morally or legally enough of a risk to piracy, the former has "won" in the equation. Naturally the latter is going to reconsider his options the next time allowance day comes around.

On the flip side, if you fight piracy too hard and you might encourage the evolution of open source competitors. The more difficult Photoshop is to acquire and use, the more improvements GIMP is likely to see, because let's face it: To most users it's the gratis freedom that matters a lot more than the libre freedom.

All in all a very complex problem with no clear answers. It certainly isn't as clearcut as "if they wouldn't pay for it anyways then they aren't a lost sale".

Monday, October 10 2005
I'd mentioned last week that I'd post the Rockton World's Fair visit, however rather than cluttering the home page with every one of these personal outings, I'm going to limit those sorts of things to living in http://www.yafla.com/dforbes/categories/Personal/
Sunday, October 09 2005

Every Thanksgiving Day (in Canada) weekend we take a walk at Crawford Lake - it's a beautiful, geologically unique little lake left behind as the glaciers receded 10,000 years ago, and it's one of the better conservation aresa here in Halton. It's also connected to the Bruce Trail, and you can hike over to Rattlesnake Point from it. Unfortunately, like last year, the colour change of the leaves is a bit delayed, so it isn't as beautiful as it is going to be in a week or two. We'll have to return there then.

 

Crawford Lake
  Personal 
Sunday, October 09 2005

Yesterday (Saturday, October 8th) we visited the Rockton World's Fair. It was a really great fall fair, and all in all was one of the better ones we've enjoyed (it and the Caledonia Fair from last weekend were the best we've ever seen). If anything, the Rockton fair seemed more legitimately rural than most.

It had all of the requisite animal shows, competitions in countless categories, and a half decent little midway for a little fair. Great fun was had by all.

 

Rockton Fair Entrance

Rockton World's Fair Mardi Gras

Rockton World's Fair Poutine
  Personal 
Friday, October 07 2005

I registered that domain some time ago, primarily as a publishing location of various SQL Server articles that I've self-published. Since then I've gotten a tonne of interest by people who'd like to contribute (people who know me and like my stuff), mostly people irritated seeing it sitting idle (I've had far too much on my plate for a while).

As such, today I switched http://www.professionalsqlserver.com over to a MediaWiki (the powerful platform that Wikipedia runs atop), though it'll take a while for the DNS change to fully propagate. It should make for interesting times, and I hope to learn a lot about online collaboration, and about the MediaWiki platform. Right now it's a bit of a mess, but I tend to exploit and master these things pretty quickly, so watch for it to get really exciting quickly.

  .NET   Blogging   IT   Slashdot   Software Development   SQL 
Friday, October 07 2005

I've added several entertaining surveys to go along with entries on here over the past couple of weeks, and have gotten a great response, however some users have questioned why they immediately get the results for the survey without the ability to pick a choice themselves.

This can happen for several reasons-

  • The survey is no longer active. I have start and stop times on the surveys, which allows me to age out surveys and cache the results. I am thinking of ways to add a nice "Survey Closed" notice on them.
  • You already answered and have the "I answered" cookie on your machine
  • You picked "View Results". Reload the page and you'll get the options again where applicable
  • Someone else answered, and the system is correlating them with you because of shared traits (such as the IP address of a shared mega proxy). Even if you don't have the user or answer cookies in your browser, the system may still decide that you must have flushed your cookie cache, and that you've actually already answered. Trying to identify people on the net is a difficult, flawed process, so there will be mistakes.
  .NET   Blogging   IT   Personal   Slashdot   Software Development   SQL 
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