Software as a Fixed-Cost Business

Charles Phillips said this during his keynote at Oracle OpenWorld 2008.  He continued to say that (my paraphrasing) a software business needs to achieve largest market share; the bigger you’re in software, the more likely you’d win. 
Profit = Volume * (Price – VariableCosts) - FixedCosts
Goal is to turn variable costs into noise, and focus on investment in R&D (and marketing).  As long as [...]

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