Linked by Thom Holwerda on Wed 4th Apr 2007 21:29 UTC
Zeta A lot of things have happened in the past few days concerning Zeta, BeOS, and Haiku. In order to create some order in the chaos, Eugenia and I have created a rough timeline of what happened the past 6-7 years. Read on for the timeline and some more thoughts on the matter. Update: Magnusoft ceases distribution of Zeta. Update II: Access answered the questions posed in the article.
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lucky13
Member since:
2007-04-01

First, I haven't modded anyone's posts up or down.

they will make sales / revenue and realize profits from these sales.

No, again you don't comprehend the software business (or any business). Revenue doesn't equal profit. Revenue in excess of operating expenses does. It's not just a matter of burning CDs. There's a lot more to the business than that, even if they were to take Bernd's code from him and include it without compensating him.

There's not enough demand for Zeta to make it worth the effort of selling. It's not worth the hassle for them or anyone else.

Just look at the fact that Magnussoft was ready to ditch Zeta for poor sales before this bleep hit the fan. It has nothing to do with requiring further development, there's not enough of a market to support selling it.

Be understood that. They tried giving it away to create more demand. Didn't bleeping work!

Palm understood that. They took what they wanted from the code and other IP then apparently shelved the rest.

yellowTab understood that. Maybe a bit too late to save their bleeps, but they know it now.

Magnussoft understood it. That's why they were initially going to stop selling it (poor sales). The licensing issue only sped up the time frame for cessation of sales to "immediately."

Access understands it. They appear to have no interest in selling BeOS or Zeta. I'm sure they'd listen to any offer you might have if you were interested in acquiring Be IP from them. I doubt you'd be able to afford it on your own. I don't think you'd be able to profit from it any more than they already have or will in the future.

Read this again:
"The archived sales figures of Zeta were far below Magnussoft's expectations. Continuation of financing the project is economically no longer viable. For the time being, Magnussoft discontinued funding of the Zeta development team on March, 16th 2007. The exclusive distribution agreement will remain unaffected. The existing contract is valid until the end of 2007."
http://www.osnews.com/story.php/17569/Magnussoft-Zeta-Sale-Figures-...

There's no profit in it. It's over, dude.

Reply Parent Score: 1

tonestone57 Member since:
2005-12-31

Maybe you should read it again, because I did & came to same conclusion:
"The archived sales figures of Zeta were far below Magnussoft's expectations. Continuation of financing the project is economically no longer viable. For the time being, Magnussoft discontinued funding of the Zeta development team on March, 16th 2007. The exclusive distribution agreement will remain unaffected. The existing contract is valid until the end of 2007."

I'll do my best to respond & keep it short.
#1 *development* of Zeta is *NOT* profitable!
#2 *distribution* (sale) of Zeta *IS* profitable! (my other posts refer to this for Access / Magnussoft)
#3 Magnussoft paid *development costs* for 1.21 & 1.5, and are also a Zeta distributor / seller.
#4 March 16, 2007, Magnussoft *NO* longer involved in Zeta development. (Cut their losses) (this & yT going bankrupt proves #1 above).
#5 March 16, Magnussoft *retains* distribution rights (main distributor of Zeta) till end of 2007. (to benefit from profits made off the Zeta sales, otherwise if losses come from selling Zeta, then they would have stopped selling Zeta altogether, proves #2 above).
#6 There are 5 other distributors / sellers
http://www.zeta-os.com/cms/custom/reseller/list.php
Do, you think they are not making profits???? Or maybe they just like making losses? (This proves #2 above).

It is impossible to know the exact profit margins, because I'm not a licensed reseller myself, but I seriously doubt resellers are selling Zeta for a loss!

Magnussoft was involved in *developer / distributor* relationship *and* on March 16 they switched solely to a *distributor* role (I think you are not understanding this or #2 above). Continuing to fund development would have meant further losses to Magnussoft.

Bernd/yT & Be Inc both failed with Zeta/BeOS, because they could not get a strong enough userbase & make the profits required to survive (to offset the development costs - where *most* of the expense comes from).

Edited 2007-04-06 18:20

Reply Parent Score: 1

Vibe Member since:
2007-03-12

http://www.zeta-os.com/cms/custom/reseller/list.php

It looks like they're still selling Zeta, and one of them is selling BeOS 4.5. Since when was that still up for grabs? Also, there's some trademark issues with one site claiming Zeta is BeOS R6.

Reply Parent Score: 1

lucky13 Member since:
2007-04-01

#1 *development* of Zeta is *NOT* profitable!

No bleep, Sherlock.

#2 *distribution* (sale) of Zeta *IS* profitable!

No, it isn't:
sales figures of Zeta were far below Magnussoft's expectations. Continuation of financing the project is economically no longer viable.

If it were profitable at all, they wouldn't have cut off Bernd in the first place and they would've also wanted an extension of distribution rights beyond this year. They cut Bernd off because they weren't going to make money. They didn't care to extend their contractual rights to distribute Zeta because it's not going to make any money. Ever.

#3-4

Wholly irrelevant and wholly unsupported by the facts.

...Magnussoft *retains* distribution rights (main distributor of Zeta) till end of 2007. (to benefit from profits made off the Zeta sales, otherwise if losses come from selling Zeta, then they would have stopped selling Zeta altogether...

Retaining those rights doesn't mean it was or is "profitable," nor does it prove it. Quite the contrary.

Note that they didn't bother negotiating for rights beyond that time, which, if it were indeed profitable, would be in their interests. All they did by retaining their contractual rights is guarantee that Bernd wouldn't immediately take Zeta to a THIRD distributor within the course of one year and who would then receive income contractually due Magnussoft. That's not a matter of "profit," it's a matter of containing their losses.

You haven't held a job in the real world yet, have you.

#6 There are 5 other distributors / sellers

Not for much longer, if they haven't ceased yet.

Do, you think they are not making profits???? Or maybe they just like making losses?

Again, you seem to have very little understanding of how businesses operate.

Magnussoft hasn't profited from Zeta, and any income they've received from the anemic sales of Zeta probably don't even offset their "investments" in Bernd's development much less the costs of distribution.

The fact that they'd retain their rights for the remainder of the contract doesn't tell you anything about profitability -- it only tells you that they didn't want someone else receiving revenue off their expenses. The other fact -- THAT THEY CUT BERND OFF ALTOGETHER -- tells you what future they saw in Zeta.

None.

Now explain that, Einstein.

Finally...
http://lucky13.blogsavy.com/2007/04/06/beating-a-dead-os-again/

Reply Parent Score: 0