Quote:
Originally Posted by coyote
So what you're saying is that they've invested time and money into R&D and even though someone pays them a one off fee to be able to utilise the knowledge gained through that R&D, that person shouldn't then be able to go and make it available to another company to benefit from their R&D?
That's an interesting idea.
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Sure, if that's how you're interpreting it. If I was to buy OFT, it would be to flash maps (not to be able to create another product to flash maps).
(i don't want to make this about me) But i've been in hardware, software and services companies at various stages. I do not know how I really feel about software, but those in the hardware space cannot operate like those in software. For example, Intel needs to get a bunch of engineers, PMs, PMMs, finance and operations people to work at a chip design anywhere from 18 months to 2.5 years before they really have something. Then they build up wafer fabs, distribution channels, sales teams ... the things go on and on. They can't do any sort of forward investment if they don't know they are going to be some sort of reward at the end and for their investors, it needs to be some soft of multiplier of the investment.
I don't know how the OFT team is doing things, but doing hardware is ... hard. I do not think they are have the unit volume to justify any sort of significant discount. I'm sure they built a prototype, went to China/Taiwan/Thailand/Vietname to find some ODM to build at some quantity level, but for such a small product they will have to put some some sort of Non-recoverable engineering fund (NRE) to get them to build it and commit to some quantity. Unless they are funded, they are going to bankroll all of this themselves. Its a risk and if they do to break even ... they are stupid or have more money than common sense.
So yes, I think they should make some money. If anyone thinks otherwise, then DO NOT BUY THEIR STUFF. Simple relationship, no need to get personal or make it more complicated than it needs to be.