20130225 nsgi cmidyear

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20130225 nsgi cmidyear

  1. 1. Free: What does that really mean? Learon Dalby Senior VP Business Solutions 2/25/2013 NSGIC 2013 MIDYEAR MEETING February 24 - 28, 2013 Loews Annapolis Hotel 126 West Street, Annapolis, MD 21401
  2. 2. iTunes: FreeYouTube: Anderson overviewAmazon: $6.40https://summaries.com/index/Free.pdfCHRIS ANDERSON is the editor-in-chief of Wired magazine
  3. 3. Free: The Future of a Radical Price “The new form of Free is based on the economics of bits, not atoms.”
  4. 4. Free: The Future of a Radical Price “The simple and undeniable fact is free is anattractive price point. It will be the basis for many a business model in the future because the abundance of digital markets is a given, not an option.”
  5. 5. History Free: The Future of a Radical Price • Four basic business models of Free – Direct cross-subsidies – Three-party markets – Freemium – Non-monetary markets http://files.myopera.com/jdlien/blog/cross_subsidy.png
  6. 6. History Free: The Future of a Radical Price • Four basic business models of Free – Direct cross-subsidies – Three-party markets – Freemium – Non-monetary markets http://files.myopera.com/jdlien/blog/cross_subsidy.png
  7. 7. History Free: The Future of a Radical Price • Four basic business models of Free – Direct cross-subsidies – Three-party markets – Freemium – Non-monetary markets http://esportsbusiness.com/wp-content/uploads/2012/06/three-party.png
  8. 8. History Free: The Future of a Radical Price • Four basic business models of Free – Direct cross-subsidies – Three-party markets – Freemium – Non-monetary markets http://esportsbusiness.com/wp-content/uploads/2012/06/three-party.png
  9. 9. History Free: The Future of a Radical Price • Four basic business models of Free – Direct cross-subsidies – Three-party markets – Freemium – Non-monetary markets http://www.turinomia.es/wp-content/uploads/2011/10/modelo-freemium-turinomia.png
  10. 10. History Free: The Future of a Radical Price • Four basic business models of Free – Direct cross-subsidies – Three-party markets – Freemium – Non-monetary markets http://www.turinomia.es/wp-content/uploads/2011/10/modelo-freemium-turinomia.png
  11. 11. History Free: The Future of a Radical Price • Four basic business models of Free – Direct cross-subsidies – Three-party markets – Freemium – Non-monetary markets http://files.myopera.com/jdlien/blog/non-monetary.png
  12. 12. History Free: The Future of a Radical Price • Four basic business models of Free – Direct cross-subsidies – Three-party markets – Freemium – Non-monetary markets http://files.myopera.com/jdlien/blog/non-monetary.png
  13. 13. Freeconomics Free: The Future of a Radical Price Scarcity AbundanceYou have to get permission Rules Anything goes “We know what’s best” Social Model “You know what’s best” Business model Profit Figure it out as we go Top-down Decision Process Bottom-up Command and control Management Out of control
  14. 14. Free: The Future of a Radical Price• If you make a digital product, realize sooner or later it’s going to be free• You can’t stop free• Understand that sooner or later you’re going to be forced to compete with free in your industry• Don’t forget free inevitably ends up making some things more valuable https://summaries.com/index/Free.pdf
  15. 15. http://fc06.deviantart.net/fs11/i/2006/184/7/e/Chocolate_lab_puppy_by_buddenbohn.jpg
  16. 16. http://coolspringsexpress.com/foodpix/Beverages-lg.jpg
  17. 17. Considerations• Data• Hardware• Software
  18. 18. Total Cost of Ownership
  19. 19. Contact Information Learon DalbySenior VP Business Solutions @learondalby ldalby@sanborn.com

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