Re: Anti Capitalism?

["Rick H. Wesson" <wessorh@ar.com>]

On Dec 31,  5:25pm, Perry E. Metzger wrote:
> Subject: Re: Anti Capitalism?
>
> Karl Denninger writes:
> > > Karl Denninger writes:
> > > > Without competiton in the repository function we're just moving the NSI
> > > > monopoly one step higher in the food chain, and making it even more
> > > > powerful.
> > >
> > > There is a difference between a $200,000 contract and one that brings
> > > in hundreds of millions in a year. The back end repository is trivial
> > > -- its the management of a couple of database machines and nothing
> > > more. The contract is also going to be awarded collectively by the
> > > users of the service (that is, the registrars) so it is likely that
> > > some control will be exercised to assure that the cost is as low as
> > > possible.
> >
> > Riiiight.....
> >
> > And its not a $200,000 contract.  You'll burn that just keeping the
> > appropriate network connectivity going for something of this importance.
>
> I seriously doubt that you need dedicated connectivity -- its just
> fine to share the connectivity, so it isn't a significant cost
> issue. Furthermore, the database doesn't need high speed connectivity,
> since database transactions aren't a high bandwidth operation.
>
> In other words, I think $200,000 is probably a very generous estimate
> for managing the database. Even were it a couple of times that, it
> would still be a fairly trivial cost compared to the overall sums
> involved.
>

Perry,

If you could say that database maintaince cost NSI 15% of the cost
to run their service and it is estimated that by then end of 1998
their revenue woulod be around 900m if growth continues. How do you
figure that it will cost .001% of that. IMHO your estimate is way
below what it will cost for the infracture to run the system. You also
have salaries, rent on a building, software development, and purchase of
some database system.

I'll wager that if this non-profit spoke to Oracle about using its product
for such a service that they would request a big chunk of that 200K just
for using their Database.

If you serously think that 200K is what this whole service can be run for,
could you enumerate how you would design and build it out? Please include
costs and design schedules.

Thanks,

-Rick



-- 
Rick H. Wesson