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Article #380

TRUE STORY: How QMS put ADOBE over a barrel and won!

#380
From: Mr. Printer Guru
Date: Tue, 25 Feb 1997 00:00
104 lines
5104 bytes
Hello my name is Mr. Printer Guru and I am your public servant for the
printer industry.  I use my name as a pseudonym because some of the
things I say will embarrass or inflame some executive egos!  :)

Anyway I have a nice little true story that happened many moons ago,
so I hope the executives that were involved won't get too upset with
me.

As many of you know Adobe is a very proud company.  Adobe developed of
course the very popular Postscript language.  Adobe 'sells Postscript'
by licensing the technology for printer controllers.  The business
model for Adobe is to get a fee (license fee) for every printer sold
by an authorized Adobe License of Postscript.  These fees grew to
build Adobe into one of the largest s/w companies in the world.  BUT
many printer manufacturers (AND USERS) grew tired of Adobe 'gouging
them' with high licensing fees.  THIS IS THE STORY OF HOW ADOBE ACTED
LIKE THE LITTLE BOY THAT PUT HIS FINGER IN THE HOLE OF A DAM TO KEEP
IT FROM FLOODING.

---------------------------------------------------------------------------------------------------------------
The following story is something I have been keeping for many moons.
My sources are from two VP's at QMS and two engineers at Adobe.
These persons will remain anonymous.
----------------------------------------------------------------------------------------------------------------

Historically Adobe has had license fees that were higher than
Postscript clones.  To combat (and stave off clones) Adobe created the
'Intel Inside' like marketing campaign of 'Adobe Postscript'.  Now
this is all fine and well, BUT as time marched on the market started
to accept clone Postscript as 'good enough', users stopped asking if
the Post script was 'True Adobe'.  I have seen this trend over the
last 5 years from many many customer (corporate, government, and
end-user).

The real tide turned when some major 'Adobe OEM's' turned the tide and
dropped Adobe.

QMS was the first major OEM to drop Adobe from its product line.  Let
me re-phrase that QMS was the first company to PRIVATELY drop Adobe. 

Let me tell you a little inside story.

Remember the QMS PS-410?  QMS's little Canon based 4ppm printer that
came out about 6 years ago.  Well, QMS's development of 'Ultrascript'
(QMS's PS clone development s/w project) was coming along nicely.
Before the QMS PS-410 was announced QMS and Adobe had a 'behind the
doors meeting' (just the good ol' boys you see) which went something
like this.

- Adobe  "We would like QMS to continue to license 'real Adobe' PS 
  inside the QMS PS-410."

- QMS    "Well Adobe we just might drop you from our entire product 
line because your licensing fees are way too expensive. In particular
for our new (the PS-410 will be world's lowest priced PS printer) we
simply can't afford to pay Adobe for any license and still make any
money."

- Adobe  "But, but you can't!  We want you to continue using our 
name!"

- QMS    "Humm, ok well we have a plan but we don't think you will 
like this!"

- Adobe  "Ok, what!"

- QMS    "If QMS agrees to lower your license fees for our higher
speed (Ultrascript was not optimized yet for higher speed printers)
printers we will agree to let 'Adobe evaluate our Ultrascript clone
PS' which QMS plans on putting into the QMS PS-410.  We expect Adobe
to evaluate Ultrascript and give Adobe's 'Stamp of approval' meaning
that IT IS 100% equivalent to REAL ADOBE PS.  Then QMS would accept
that Adobe could claim that QMS is using 'Real Adobe PS'."

- Adobe  "Wait a second!  We are confused! What does Adobe get out of 
this?  Where's the benefit to Adobe?  Where do we make money?"

- QMS     "Ok, lets make this 100% clear to you.  Unless you agree to
our proposal QMS will publicly drop Adobe now!  Your benefit is that
you can claim (even though its not true) that Adobe is licensing 'Real
PS' to QMS.  This way you can keep the would believing that QMS is not
dropping Adobe."

- Adobe    "Ah, humm, ah.  Wait we must discuss this."

2 weeks pass....  and

Adobe agrees to the hardball proposal from QMS.

And thus you have it ADOBE Blessing a CLONE as REAL ADOBE POSTSCRIPT
to keep the world (and Adobe's dear licensing fees) in line.  I
suppose Mr. Warnock likes his Yachts (I don't blame him I like Yachts
also, particularly if they are my own.) :)

PS:  IF YOU HAVE ANY INSIDE PRINTER INDUSTRY STORIES AND YOU WANT TO
TELL THE WORLD BUT YOU ARE A LITTLE AFRAID (for your job, your life,
etc.) LET ME KNOW.  I CAN DISH IT OUT! :)

Best Regards,

your humble servant
Mr. Printer Guru
mr_ptr_guru@hotmail.com
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From: mr_ptr_guru@hotmail.com (Mr. Printer Guru)
Subject: TRUE STORY:  How QMS put ADOBE over a barrel and won!
Date: 1997/02/25
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