Business Model

If you really solve a problem well, you have solved it for anyone who can run that software, as long as they have the environment that you used. In "business language": **if you do your job well in Programming, you lose your job.** page

# History of Commercial Smalltalk

> Smalltalk vendors had the quaint belief in the notion of “build a better mousetrap and the world will beat a path to your door”. Since they had built a vastly better mousetrap, they thought they might charge money for it. > > …Indeed, some vendors charged not per-developer-seat, but per deployed instance of the software. Greedy algorithms are often suboptimal, and this approach was greedier and less optimal than most.

This may be an accurate description of the business model of ParcPlace Systems, but it isn’t a fair characterization of the other Smalltalk vendors. In particular, Digitalk started with a $99 Smalltalk product for IBM PCs and between 1985 and 1990 built a reasonable small business around sub $500 Smalltalk products for PCs and Macs. Then, with VC funding, it transitioned to a fairly standard enterprise focused $2000+ per seat plus professional services business model. Digitalk never had deployment fees. I don’t believe that IBM did either.

The enterprise business model worked well for the major Smalltalk vendors—but it became a trap. When you acquire such customers you have to respond to their needs. And their immediate needs were building those fat-client applications. I remember with dismay the day at Digitalk when I realized that our customers didn’t really care about Smalltalk, or object-based programming and design, or live programming, or any of the unique technologies Smalltalk brought to the table. They just wanted to replace those green-screens with something that looked like a Windows application. They bought our products because our (quite successful) enterprise sales group convinced them that Smalltalk was necessary to build such applications.

Supporting those customer expectations diverted engineering resources to visual designers and box & stick visual programming tools rather than important down-stream issues such as team collaborative development, versioning, and deployment. Yes, we knew about these issues and had plans to address them, but most resources went to the immediate customer GUI issues. So much so that ParcPlace and Digitalk were blindsided and totally unprepared to compete when their leading enterprise customers pivoted to web-based thin-clients.