[152538] in North American Network Operators' Group
Re: CDNs should pay eyeball networks, too.
daemon@ATHENA.MIT.EDU (Valdis.Kletnieks@vt.edu)
Tue May 1 18:19:52 2012
To: David Miller <dmiller@tiggee.com>
In-Reply-To: Your message of "Tue, 01 May 2012 18:03:06 -0400."
<4FA05D9A.7030708@tiggee.com>
From: Valdis.Kletnieks@vt.edu
Date: Tue, 01 May 2012 18:18:48 -0400
Cc: nanog@nanog.org
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
--==_Exmh_1335910728_1955P
Content-Type: text/plain; charset=us-ascii
On Tue, 01 May 2012 18:03:06 -0400, David Miller said:
> From an accounting perspective, every R&D effort that I have seen or
> been a part of was not billed to any customer. R&D has always, in my
> experience, been an internal charge against a company's own profits.
RIght - and when pricing the result of the R&D, you take into account the
internal charges and estimated sales volume to determine a target price
point. R&D was $316K and you estimate you can sell 100 of them, you're
going to have to charge at least $3,160 a copy to make a profit on the
project. You sank $150M into R&D and think you'll sell a million units, you'll
need to charge $150 to break even. And so on.
The point is that if you already got *paid* the $316K, it's morally wrong to
include it in the calculation of "sunk costs we need to recoup to turn a profit".
--==_Exmh_1335910728_1955P
Content-Type: application/pgp-signature
-----BEGIN PGP SIGNATURE-----
Version: GnuPG v1.4.12 (GNU/Linux)
Comment: Exmh version 2.5 07/13/2001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=i/H3
-----END PGP SIGNATURE-----
--==_Exmh_1335910728_1955P--
