Why we should all be concerned for the future of CCN

Date: Sun, 11 Oct 1998 15:46:56 -0300
To: Christopher Majka <nextug@is.dal.ca>
From: Peter Morgan <ae112@chebucto.ns.ca>
Cc: CCN Information Provider Committee <ccn-ip@chebucto.ns.ca>, Richard Rudnicki <foxpoint@fox.nstn.ca>, CCN Board <ccn-board@chebucto.ns.ca>,
References: <4.1.19981006183128.00929f00@mail.riversystems.com>
Precedence: bulk
Return-Path: <ccn-ip-mml-owner@chebucto.ns.ca>

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Hi Chris,

Comments throughout:

>me to the belief that if we tried to up the cost for these to $400/annum
>at least 4 of these would certainly opt out or move out (sports group;
>student newspaper; research project & prof group). Finding $400 one-time
>was a big enough shtick for them let alone $400 per annum. 

And/or they do not see a value in paying $400 annually. Where would these
folks go? No one else that I know of offers VDN's for free. They would have
to pay an annual/monthly fee for anything but a very small, advertising
laden geocities site. $400/year represents a better value considering what
we bundle with it.

At some point in the future it would be nice to be well off and say: "Hey,
IP, the best thing going is your own domain and we offer this for free."
For now we need sustainable revenue.

>VDN's. They've all put a VDN on a distant back burner since they feel the
>_current_ (one time) price tag is still too steep for them. 

I guess I gotta say that that is too bad, but we simply can't give away our
resources (time/energy)

>Aside from the fact that I believe the proposed price tier doesn't reflect
>the (primarily) one-time set up costs, in any immediately foreseeable

My experience as a consumer of these sorts of things is that sure, a few
keystrokes, a bit of email and poof, like magic I have a domain. However,
there are a whole series of ongoing issues. Mail account setup/deletion.
Questions about web space, directories, cgi-bin, etc etc etc. To say
nothing of the overhead to support all this: telephone lines, office staff.
(Since a VDN is not also paying an individual fee we are providing a phone
line which costs us every month -- $3/month in the case of the 20:1 PPP
ratio.) And then hardware and software upgrades ... Yikes.

>future I can't envision VDN fees (of the kind proposed) from the
>non-profit IP sector forming any substantive revenue source for the CCN.

50 IP's times $400 = $20,000/year

>C) How about CSuite? I recall our business plan/forecasts the projected we
>could make/build a substantial revenue for this in terms of technical
>support and development once there was a sufficiently large installed base
>of the technology. I think we have a real winner on our hands with this
>technology. Where are we in terms of moving this technology? 

CSuite is dead in the water, to put it bluntly. I agree -- Great
Technology. Currently CSuite is a Cooperative Inc. There is not sufficient
energy/technical expertise to move it forward. the most optimistic biz plan
would see it as a cash sink for a year, in any case.

>D) How about finding sponsorships for CCN pages? We've discussed this

To be pursued by Richard.

>E) Using our in-house expertise in other contexts. This spring's

Agreed. Effort required to write proposals substantial. Current focus:
Urban CAP.

>Health-Canada project, very expertly administered by David Murdoch, was
>
>F) Partnerships with other players in the infromation technology sector.

Agreed

>We've talked before about strategic alliances with others (Sympatico?) who
>would be very interested in the user and IP base that we have.

On my agenda. I am quite willing to have others pick-up here. For ex. we
could create a jim dandy partnership with mpowered or andara.

>G) Partnerships with sites for PATs, Urban CAPs, Volnet initiatives, etc.
>The list goes on -- undoubtedly beyond my knowledge of the possibilities. 

Long term benefit. Some efforts being expended in this direction.

>3) I don't know if the user trend (from 5,200 --> 4,800) is real or if it
>indicates anything significant at this stage, however, we do know that we

It is a crisis.

>are in a highly competitive environment for users and I don't know (or

But no one else offers what we do: a community of users, extremely
low-cost, services to both high end and low end users, etc.

>Here's a small illustration: Friday I was at the SNS Celtic Electric
>concert. Sympatico personnel were there in force (probably 10+ people) 
>handing out and collecting sweepstakes form (+ exhibits, etc.) . They had
>a draw after intermission and gave away $100 gift certificate plus 2 free
>SNS tickets. Trivial cost. In return they got a thousand names, with their
>addresses, EMail addresses, age brackets, demographics & some Internet
>info. You want to guess how they'll use this information? ;->

I bet sympatico is having trouble breaking a profit on all this stuff. They
have to be in the market because it is the future.

>I constantly wonder how we can compete with such marketing initiatives

Don't. Just do a damn fine job and let the good word get out. For our
current users, this is what we do (a damn fine job).

>paved by revenues that we can only dream of. Look at the Sympatico
>marketing/demonstration sites at places like City Center Atlantic.
>Beautifully designed, equipped with top-flight hardware, fully staffed by
>people trained to market Sympatico in a sophisticated fashion (go in and
>ask for an M-powered demonstration sometime ....). It beats me. 

I did. Buddy said he'd be better able to describe it when he saved enough
money to buy a computer so he could have it installed on his own machine.

>I share your view of CCN by 2000 and would like to see movement on all the
>changes you propose. If I can underscore what I think is a key element
>(and of course this does have cost repercussions ;->) it is to have more
>technical and administrative staff positions/time.

My goal is for Richard to generate $20,000 which we use to fund a half-time
e4xec dir position whose role is to generate ...

>I think in some areas we've reached the limit of what we can reasonably
>expect of volunteers in terms or running, developing and administering

Especially without getting new people involved. Every meeting i go to it is
the same faces. 

>what is a very diverse and complicated system. Moreover, there are a whole
>range of issues (administering/deciding/implementing/invoicing pricing
>tiers being one of them ;->) that would be ever so much more efficiently
>dealt with by a staff person (with input from the Board and appropriate
>consultation) then by a decentralized group of volunteers such as we all
>are. 
>
>Just my $0.02. 

Always appreciated.

Peter Morgan
Chair, Chebucto Community Network 


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