[MUD-Dev] BIZ: Who holds your cahonas in their hand? (runs your infrastructure...; )

[ceo]

Ren Reynolds wrote:
> On 09 September 2003 21:16, Adam M wrote:

> As was in the hosting, outsourcing and telecoms game for some
> years I just thought I'd stick up the industry for a moment <g>
> Though in a nice way... no need to duck, unless you just like
> quacking.

:)

>> there are many people trying a land-grab on the server-hosting
>> Well there was. It's more land drop at the moment as the real
>> estate costs are not going away but the revenue curves have.

I think that should have been:

  >> there are many people trying a land-grab on the server-hosting

  > Well there was. It's more land drop at the moment as the real
  > estate costs are not going away but the revenue curves have.


...and I wasn't really talking about server-hosting in the
traditional sense (my mistake for being unclear - see below).

>> either because it's the major point of control - and gives you
>> tons of leverage over the money (that comes from the MMOG) - or
>> because it's so easy to do, and high-margin.

> So easy to do !

> High margin !!

> I think very much not. Server hosting is pretty low margin stuff.

Sorry - I was being too brief. I meant that vanilla hosting BECOMES
this (easy; high-margin) when performed in an MMOG-hosting
situation.

High margin - for all the reasons you cite above. Hosting an MMOG
ultimately allows you to demand a percentage of the subscription
revenue ("I'm investing in expertise, big-iron, bandwidth etc that
scales with number of customers, so let's work out a payment/reward
that scales with numbers of customers, and their aggregate usage").

Easy - because it's largely a scientific, predictable business *when
compared to* the terrifyingly subtle, whimsical,
never-know-what-the-next-disaster-will-be nature of MMOG
*development*. (I'm assuming "development" includes both the
post-release development and enhancement - opening you up to the
risk of huge backlash when you rebalance the game - as well as
pre-release dev).

Hosting companies like it it primarily - AFAICS - because of the
better margins. Development companies primarily like it, again
AFAICS, because it's a much easier way to make money. Certainly, an
in-depth look at the MMOG middleware market shows a very strong
tendency for trying to grab it coming from tools companies. Both in
the ones with subtle long-term planning ability, and in the ones who
are just looking to make the easiest money. YMMV. My knowledge of
the motivations of the telecomms market is only second-hand
(although I get the benefits of some very insightful people there
:)).

Adam M
_______________________________________________
MUD-Dev mailing list
MUD-Dev at kanga.nu
https://www.kanga.nu/lists/listinfo/mud-dev