Hello? <vent>

[Glenn J. Koster, Sr.]

Hans wrote:

> Glenn Koster speculates:
> >
> > In their defense, I must say that one of the major factors in their
> > pricing policy has been the fall of loonie.  Cognos built a competitive 
> > company on the strength of the Canadian dollar from a Canadian base and 
> > build a good reputation south of the border.  Unfortunately, the loonie 
> > has seen a collapse of approximately 40% in the last 6-7 years, right in 
> > line with the rise in costs to their US customer base.  Maybe there it
> > is not as easy to be multi-national as some would have us believe.

> Ahem. This would mean that they're making 40% more (Canadian) revenue off the 
> same (US$) price list ....

To which I reply:  True they are making more Canadian revenue. 
Unfortunately, with the devalued loonie and the corresponding increase
in revenue, a exponential drop in purchasing power has occured.  I am
not an economist, but I would gather that when your dollar buys less 
either at home or abroad (which happens when your currency devalues the
way the loonie has), it is very difficult to maintain the status quo. 
American goods and services for Canadian companies cost more - including
(especially) people costs which have continued to soar in the technology
sector.

Keep in mind, I am not in support of Cognos current pricing strategies. 
I believe that they are either predatory or self-defeating.  Predatory
because a number of companies locked into Cognos years ago now are faced
with critical redevelopment timetables for Y2K.  Self-defeating because
once the Y2K issues are resolved, how many do you think will look back
at Cognos with fondness and say "thanks for being there for me". 
Probably not many - most will begin to evaluate reasonable alternatives.

Glenn

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