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Subject: Re: GISList: Compressed Terrain Data
Date:  01/07/2003 11:20:56 AM
From:  Paul Ramsey



This sounded much more impressive until I actually did the math...

42 people in the credits at version 4.5.

So, being liberal, I will assume 100 people on staff, and an average
salary of $60000K US. I'll throw in overhead of 50%. Then I'll add a 50%
profit margin (better than Microsoft!). Now I will assume you make *all*
your revenue from software sales, and that you *only* sell items at a
price point of $245.

100 * $60000 * 1.5 * 1.5 / $245 = 55102

So, assuming you have been churning away at this capacity (and it is
pretty nice, $13.5M per year gross) for seven years, and have never sold
to the same person twice, that would put the total number of users at
385000. Right in the meaty part of the "hundreds of thousands" figure
you are so vociferously disputing.

One would think having "only" hundreds of thousands of users was a bad
thing, the way you talk :)

> Although we do not publish our sales figures, you'd have to be spectacularly
> inept at arithmetic to think we have only "hundreds or thousands" of users.
> Manifold has pumped out a steady stream of GIS and related packages since
> 1997 (4.00, 4.50, Database Commander, 3D View Studio, 5.00, 5.00
> Professional with Debugger, 5.00 Enterprise Edition, and this month, 5.50).
> It's been a major new release about once every six months. The last time we
> named names in our credits (4.50) there were 42 people named. If I can get
> you to pause a moment from your unfounded attacks and speculation to put the
> arithmetic part of your skill set into play, I would invite you to take what
> you think is a reasonable profit margin based on an average sales price of
> under $245 and to then make a back of the envelope calculation what you
> think the costs are of creating, maintaining and evolving a package of the
> breadth and sophistication of Manifold System (well over 1.5 million lines
> of VC++ code) and then give your estimate of just how many units must be
> sold to keep such an enterprise growing and prospering as Manifold obviously
> has.




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