Xref: utzoo comp.lang.objective-c:266 comp.sys.next:17921
Path: utzoo!utgpu!news-server.csri.toronto.edu!cs.utexas.edu!sun-barr!decwrl!netcomsv!rkitts
From: rkitts@netcom.COM (Rick Kitts)
Newsgroups: comp.lang.objective-c,comp.sys.next
Subject: Re: health of Stepstone and ObjC
Message-ID: <1991May23.031433.11017@netcom.COM>
Date: 23 May 91 03:14:33 GMT
References: <2058@camex.COM>
Organization: Netcom - Online Communication Services  UNIX System {408 241-9760 guest}
Lines: 58

In article <2058@camex.COM> geoff@circus.camex.com (Geoffrey Knauth) writes:
>I've been hearing ugly rumors that IBM dropped NeXTStep and that
>Stepstone and Objective-C are in trouble.  Someone please tell me this
>is disinformation.

I spoke with the president of Stepstone today regarding Stepstones 
financial situation. I was told by the person who answered the phone
(not the pres) that SS was undergoing a ``reorganization'' and that
``very(?) few employees were left.''. The president then informed me
that he was currently putting together a deal himself to get SS
finances back in order. For various reasons I asked how much to
purchase the company. $1,000,000.00 for 50% interest with the other
half controlled by the employees (more on this in a second). Also,
$50,000.00 will by a 2.5% interest in the company, up to a maximum of
15% or $250,000.00. If SS folds the company will sell its customer list
to someone who will then presumably provide support and upgrades. The
Objective-C trademark, nor the SS IC-Pak library are for sale or license.
It is ``the only thing [they] have.''. (Personal note: This I think is
the reason why SS is not doing as well as it could. One does not
promote a tool and expect millions of dollars to be invested in it
without having a second source. I wonder really if SS is suprised at
their situtation?).

Ok, so those were facts as I understood them. Here are my impressions.
This is entirely subjective, and should be dismissed as frivolous
hearsay for serious conversation.

First, the $1Meg seems pie in the sky to me. It is too even, and I
think that it was simply thrown out to me. Secondly, towards the
latter part of my conversation with the president, I asked who would
have controlling interest, and quickly said "Oh yes, the employees.".
He responded by indicating that the employees would control 40% of
the company. See the note above about how employees would own 50%
of the company. This might have been a simple mistake, but my impression
was and is that this is being played by the seat of the pants. Finally
it seems clear to me that the buisness folks at SS have no concept of
how to market a language. Ridiculous license restrictions, unwillingness
to even license their trademark, etc. I've been fighting very hard at
work for Objective-C (C++ is the contender). Technically I was winning
hands down. This morning after my conversation I informed my boss that
we would be dropping Objective-C as a possible development language.
I suspect that this scene will be repeated in many places. This, sirs, 
is a genuine shame.

With regard to IBM dropping NeXTStep I do not know for certain. I offer
this information however. The president of SS is placing great hopes
for IBM, and when I saw Steve Jobs speak he indicated (very indirectly)
that NeXTStep and IBM were in the offing. SS stands to gain $500,000.00
if the IBM deal goes through. At the previous burn rates ($10,000,000.00
in seven years) this translates into 4 months of operation.


>Geoffrey S. Knauth                            E-Mail:    geoff@bos.camex.com
>Camex / DuPont Imaging Systems Inc.           VoiceMail: (617) 426-7550 x451
>75 Kneeland Street                            Reception: (617) 426-3577
>Boston, Massachusetts  02111                  --standard disclaimers--

---Rick