Swypes Business Model. Lets petition them to change it.

[Gunghoray]

I find it interesting that their business model is only OEM focused, BUT... they did pick up an additional 5 million in funding which goes a LONG way toward developing and marketing their product. I'm a business professor. I'm writing them to ask their permission to use this as a case study in my Intro to Business classes. Should be interesting to run the numbers.

I'm with many of you about the ethical issue of using their software without permission. If they don't release it for purchase, the right thing to do will be to stop using it. That would be a shame.

Prof Ray

 

[Martin030908]

Hopefully Swype jumps into the Android Market, their product sells itself. But whatever they do, it's still a great product

 

[Imatriceratops]

Sent an email ^.^ Figured that I have nothing to lose. Why not?

 

[Gunghoray]

Run the numbers

Don't get me wrong. I adore this product and hope to purchase it legitimately soon. HOWEVER, as a Business Professor, I'm constantly reminding my students to "follow the money" when analyzing a business case.

In this forum we have 22,000 members. Let's assume ten thousand decide to purchase Swype at ten bucks a clip. That's a hundred thousand dollars in revenue for Swype. Multiply that by ten to get a hundred thousand sales from all the Droid users out there who will love the product but aren't on this forum. That's still a just a million in revenue.

A million bucks in revenue is most likely pocket change compared to an OEM multi-year contract. Not to mention the support efforts to work with a hundred thousand end users who all purchased the software is a HUGE difference from working with the likes of Motorola or Verizon to provide support training to their call center CSRs.

This gets at economies of scale. These guys entered the market at a much higher level than our average developer working at home on a cool app that probably won't sell but will be a great free app. That's just a far different business model.

I sure hope they reserve the right to sell an end-user version no matter who they sell as an OEM license. That'd be a no-brainer to purchase.

Happy New Year, fellow Droid Aficionados,

Prof Ray
Recovering Storm Abuser

 

[TxDoc]

Swype gets a boatload of money from Samsung, Nokia | WMExperts

Just the other day we were talking about how the "L337 |-|4><0r3r$" swiped Swype from the Verizon Omnia II.We also lamented both in print and the podcast about how this is a double edged sword for the little Seattle company: tons of exposure and praise, but peeps are stealing your goods! Then again, we suggested that OEMs may see the great press featuring Swype and see they want that on their devices.


Looks like the latter happened (we won't say told you so). Nokia and Samsung have invested $5.6 million into the fledgling company, which has to have caused a lot of popping of corks this week.


Guess we can look forward to more Swype in official (and unofficial) devices in 2010. Sounds good to us. Speaking of, are you using Swype yet?

 

[Atook]

Idimick points are spot on. If I was sitting on software like this OEM would be the way to go.
The way I see it, market apps are for the small fish. OEM contracts are major dough. Prof Ray is right, follow the money. The people who wrote this genius software are no dummies, I’ll bet they’ve done the math..
It doesn’t rule out the possibility of Swype for the droid though. Motorola could purchase an OEM contract with them and push the software in an update to us. How cool would it be if Swype was included in the January update?

 

[cb2000a]

And then there is this posted on their forums by the Admin one day ago:

I'm glad you are so enthusiastic about swype!! We are working with many OEM's and I can't give you specifics just yet but our next release should be with our andriod platform. Keep checking back with us!!

 

[JayMonster]

One thing all those e-mails may do... give Swype some more leverage in selling to the OEM's... "See... look how many people want this, and it isn't even officially out!"

I certainly understand and appreciate the enthusiasm that the OP has for the product, but if this had been a market app and they changed after garnering hundreds of thousands of paying customers, then decided to switch, it might have been easier to convince them to "switch back" or to have a dual model, but at this point, this is their starting point, and they seem to be doing well with it (based on the venture capital invested), so there really is no solid reason or convincing argument to have them alter the path they are already on.

 

[RW-1]

Business models are not set in stone, what you read today is not what would be in action at a later date.

 

[justbob]

Someone alluded to it earlier, but selling only to OEMs not only simplifies the sales model, but the support model as well. Selling only to OEMs mean that from a support standpoint, they only have to deal with other hardware/software professionals and they don't have to deal with every technologically-challenged numbskull that has downloaded their app. Providing end-user support is expensive so personally, I think they have the right idea.

If you want to get Swype on the Droid, e-mail Motorola & Verizon and ask them to add it.

 

[jdougal]

Wasn't swype created by the same inventor as T9? I'm sure he's just following the business model that he used with that invention. Marketplaces and downloads weren't even possible back then and yet I'm sure he made a nice bit of money on t9. It's on almost every phone you buy for several years, and still used. I'd venture a guess that he can make a lot more from large payments from manufactures then he can through small $4 sales. Also the customer service, tech support, etc isn't needed.

 

[JayMonster]

Business models are not set in stone, what you read today is not what would be in action at a later date.

That is true... but right now their model is working (read they are getting capital)... so why would they change it? It is usually a model that has been altered that can be "changed back" with an e-mail capaign.