February 13, 2012

Delphi Whopping 2011 Growth: More Details

During a sales partner event last week I found and (and was given permission to blog) some more details about that 54% Delphi XE2 sales increase, mentioned in a press release last week.

During a sales partner event last week I found and (and was given permission to blog) some more details about that 54% Delphi XE2 sales increase, mentioned in a press release last week. This serves as a response to some of the critics that commented on the previous blog post

First, the 54% increase in on sales of XE2 from the product announcement (that is September 2011 to December 2011), compared to the same period of the last year. That is, the months after XE and XE2 were introduced. The numbers includes Delphi, C++Builder, and RAD Studio. It is not a 54% increase on the yearly sales, but that have been going up very nicely anyway.

Second, the number is the increase in total revenues, but I was told that the increase in number of licences sold is very similar. This means the ratio of prefessional/enterprise sales are likely comparable (but this last is a personal observation for which I got no confirmation).

Third, since some people questioned the size of the licence revenues, I was suggested to blog that the overall revenues of Embarcadero are in the order of magnitude of a hundred million USD, and about half of it comes from the RAD Studio family of products. So you can do your math and see what the Delphi sale increase is worth. Which is a significant business... 



Delphi Whopping 2011 Growth More Details 

 Awesome, this means that:
- they make about USD $50 million/year from RAD Studio 
family products
- about USD $4 million/month in revenue
- they made about USD $2 million more somewhere 
between September and December 2011
- they have more than enough resources to deliver 
<extremelystrong>high quality products</extremelystrong>
- they can lower(if not eliminate) the price of 
licenses for schools

-- I hope my math is correct --

"Embarcadero Technologies Grows Delphi and C++ by 54% 
in 2011" -- seems extremely misleading to me at least

Can't wait for Delphi 2010 Service Pack 13 this year!
Comment by Dorin Duminica [http://www.delphigeist.com] on February 13, 11:05

Delphi Whopping 2011 Growth More Details 

Dorin, I don't think your math is correct. And there 
are also difference in sales from month to month. But 
they are making some serious money from Delphi XE2.
Now I don't think this means they'll give away free 
products, but I certainly hope they'll be investing 
even more (new compiler, large improvements in 
FireMonkey, more platforms, and so on). They claim the 
54% increase is in XE2, of course before September the 
product didn't exist. I won't say they are 
misleading... but certainly they are not clear... and 
this is why I asked for permission to post some more 
Not sure why you cannot avoid the ironic comments. 
From Delphi 2010 to XE2 they've added tons of features 
(including 2 new compilers), calling it a service pack 
doesn't make much sense to me. It is true that there 
are issues (and I certainly want to see them fixed), 
but I wonder if you ever try some of the acclaimed 
competing products, that are much worse when it comes 
to quality.
Comment by Marco Cantu [http://www.marcocantu.com] on February 13, 11:19

Delphi Whopping 2011 Growth More Details 

 @Dorin Duminica

 [ - about USD $4 (4 000 000) million/month in revenue 

 If there are 300(at least) developers in RAD studio 
team , and if  one engineer is given 10000 $ a month 
(at least)   

4 000 000 - (10000 * 300) = 1 million 

Is that enough to give free copies.

As we know Delphi is now in a good hand , but it still 
needs to grow more.

Note : These calculations are only based on Dorin 
Duminicas assumptions.

Sorry for insulting mathematics. 
Comment by VRV on February 13, 12:54

Delphi Whopping 2011 Growth More Details 

@Macro I'm not claiming that my math is correct, I hope 
I'm wrong but in the sense that I'm assuming less.
They should strongly consider luring "soon to be" 
developers while they are in school, this will ensure the 
future of the product itself, how can they attract 
students if the teachers need to get license for every 
student, it can get VERY expensive...
Sorry Marco, I can't help it regarding "service pack".

@VRV that's $1 million - TAX if I'm not mistaken...
'Is that enough to give free copies.'
I was referring strictly to schools(high school, 
university, etc.), these people are going to ensure it's 
future, so yes, I think it is more than enough to give 
free copies.
Comment by Dorin Duminica [http://www.delphigeist.com] on February 13, 14:24

Delphi Whopping 2011 Growth More Details 

It doesn't look the more money Apple makes from iPad 
and iPhone the more free ones they give away.
I'd invest the revenues in building an attractive 
product for the price (features and quality), not 
subsidizing it.
Schools have already academic licenses, and anyway 
what languages are taught are often "fashion-driven". 
Price alone is not a driver.
Should they also ask for free iPads and Macs to 
develop with Delphi for them?
Comment by Luigi D. Sandon on February 13, 14:55

Delphi Whopping 2011 Growth More Details 

I think now Embarcadero has taken Delphi to live again 
(it almost died in the Inprise days ...), is the moment 
to gain the young people world: university, high school 
and every place teaching programming to new developers. 
Not just free school licences, also a serious campaign 
in these field. IMHO, of course.
Comment by Tiago Ameller on February 13, 15:12

Delphi Whopping 2011 Growth More Details 

@Luigi D. Sandon you're comparing apples with water...
You can't compare a physical product with software, software 
is written once and then copied multiple times while an ipad 
can't be copied without adding cost to it.
On top of that, I'm not aware of special "offer" to schools 
from Embarcadero(could be wrong here, but if you can 
provide a link, please do).

I'm not trying to trash Embarcadero, they obviously made a 
lot of improvements over the years, however if @VRV's 
numbers are true, meaning they have 300 developers, then all 
I can say is that "something is not cool in Denmark"!
Comment by Dorin Duminica [http://www.delphigeist.com] on February 13, 15:25

Delphi Whopping 2011 Growth More Details 

@Dorin Duminica Your arguments are correct ,but 4 
million / month is still not enough to maintain a very 
complex product like Delphi.
Comment by VRV on February 13, 15:48

Delphi Whopping 2011 Growth More Details 

Most people here are developers, not sales persons (I
guess). Let’s build some cool things with Delphi;
that’s the only way Delphi will move forward. That’s
the only reason why Delphi didn’t die after the
Borland era (because nice things were built in
Delphi). Object Pascal in a broader sense is even
beyond Embarcadero or Borland...FreePascal and Lazarus
are good examples. 

If at the end you don’t like or you don’t trust in the
power of Delphi, then move forward with other
languages or IDEs. That’s a valid choice as well. 

I am trying to be neither cynical nor ironic. If I was
ironic (cynical), then I apologize. 

I do like Delphi and I will make my best to build nice
things with it. I think that will help a little.
Comment by Yanniel [http://www.yanniel.info/p/delphi-programming.html] on February 13, 16:39

Delphi Whopping 2011 Growth More Details 

Hi, i am George V. from Greece,
I have been using Delphi 3 to 6 for more than 15 
years even after Borland/Inprise had almost killed 
this magnificent product.
During the "years of darkness" Delphi developers 
where almost exiled from the market, IT managers 
where laughing when mentioning the devil word 
"Delphi" and the vast community was shrinking and 
shrinking and...
But silently some developers (like me) were still 
developing apps despite the modern "sirens of 
Odysseus". Don't ask me why...

After so many years, i am happy now having the brand 
new Delphi XE2 in my hands and studying all changes 
since Delphi6. It is a huge improvement and i believe 
it really stands for what is and should be Delphi.

My point is what i think everyone who knew Delphi 
from the beginning will be skeptical about.
Will EMB manage to do the big bang once again, or it 
will SyUtils.Abort?
I think they are at the right way. Many webinars, 
videos, new website, community and newsgroups re-
engaged, and now the 54%.
That is good, and as long as the community grows 
again the question will be answered.

Have fun developing, because development is fun!
Comment by G.Vavoulogiannis [http://g-vavoulogiannis.blogspot.com/] on February 13, 18:24

Delphi Whopping 2011 Growth More Details 

Goodness me, whatever do Embarcadero think they are
doing? Everyone knows there is no future in IDEs.
Delphi is supposed to be used as a cash-cow to milk
for funding spurious attemts to enter the enterprise
market, not re-invested in. Tsk.

Comment by Miss Management on February 13, 21:30

Delphi Whopping 2011 Growth More Details 

I think a lot of the arguments here are pointless.  
Embarcadero will make more money if they sell more 
licenses (which they seem to be doing).  The best way 
to make Delphi successful is to buy more licenses - 
and to do this we (as Delphi developers) need to get 
more (good) software to market so that we (or our 
employers) can employ more staff and buy more 

I'm somewhat gambling that there is a need for new 
developers to learn Delphi, I'm currently working part 
time producing Movies to sell commercially (feel free 
to buy my first one from my website LearnDelphi.tv).  
I feel I've been doing my part over the years to 
promote Delphi with my free content.

Marco, Bob Swart, and Cary Jensen have also been hard 
at work producing educational materials (both free and 
commercial), for which I'm very grateful - If you 
haven't read many of these then you should invest a 
bit of time and money in them (after my video of 
course), as a small investment education now could pay 
off big later on.

Anyway - that's my $0.02
Comment by Alister Christie [http://learndelphi.tv] on February 13, 21:46

Delphi Whopping 2011 Growth More Details 

 I have built and enterprise level document management 
application with GIS functionality with Delphi. 
Everything, even the GIS functionality and Oracle 
connections are self contained within a very small 
exe.I have been programming for 20 years and with 
Delphi since Delphi 2. I am very happy to hear Delphi 
is doing well. I just don't understand why developers 
would use anything else.  Go Delphi!!! I am not 
concerned about free stuff just stable stuff with a 
good price point and that's what Embarcadero has been 
doing for a few years now. Delphi Whopping Growth is 
nothing but good news. During the dark days as was 
mentioned by George V. from Greece I too refused to 
use anything else. Once you dig into Delphi and 
realize what can be done, Well if Delphi goes away I 
stop programming and just become and Oracle DBA.
Congratulations keep up the good work
Comment by Keith Russell on February 13, 21:48

"You can't compare a physical product with software"? 

Because software has no development costs? Because 
you can't make cheap chinese workers build your 
expensive products for a dime per hour? Because your 
development cycle are shorter and you can use far 
less "off-the-shelf" components developed elsewhere? 
Because there are far fewer developers than phone 
users? Because you have to factor piracy into your 
losses as well? Running a software company is not 
much different than running anything else. The idea 
the software "must be free" because it is 
not "physical" is pretty absurd.
Comment by Luigi D. Sandon on February 13, 21:48

Delphi Whopping 2011 Growth More Details 

 @Luigi D,

Great post.  You nailed it.
Comment by Steven Pacheco on February 14, 00:22

Delphi Whopping 2011 Growth More Details 

I perceive that many people have crystal ball, are 
saying until how much an employee of embarcadero earns 
and etc… 
the important one is that the DELPHI improved and goes 
better much more, this is what it matters! 
Comment by Savério Vertoni [http://saveriovertoni.wordpress.com] on February 14, 00:33

Delphi Whopping 2011 Growth More Details 

 Delphi is far too expensive. I own 1,2,3,5,7,8,2010 and i'm now 
using delphi only as a hobby. I simply can't afford the upgrade to 
xe2. Delphi deserves to be more popular and the only way I can 
see this happening is to get own to xcode levels. £29.99
Comment by Ksymeon on February 14, 00:34

Delphi Whopping 2011 Growth More Details 

 the subject leaves values for the financial directors. 
we go to speak of development, the Delphi xe2 is very 
good, and goes to improve sufficiently!
Comment by Savério Vertoni [http://saveriovertoni.wordpress.com] on February 14, 00:42

Delphi Whopping 2011 Growth More Details 

Happy Birthday Delphi

Most of the Delphi Sellers and Delphi users are happy 
because of XE2

What about those who are doing the both.

Comment by VRV on February 14, 09:31

Delphi Whopping 2011 Growth More Details 

@Luigi D. Sandon
You're not getting my point for some reason...
I'm not saying "free" as in "free beer", I'm saying free 
or very cheap for schools, it could be cheaper for 
developers as well... rather than downloading it, a lot 
would actually buy it for say $200 or so, but that's not 
my problem...

The most of the "off-the-shelf" components cost money, 
and are not cheap at all, however it does drastically 
reduce your development time, but there are some which 
only adds "shiny" look -> yuk!

Let's try something else:
- software: you write it, it costs you 200h, you want to 
make say $50/h, then the price of the software needs to 
be in such a way to cover your time and if possible get 
your more, therefore:
> 200 x $50 = $10,000
if you manage to get your $10,000, either from selling 
10,000 <huge>copies</huge> or by selling it to one 
customer you've covered your expense, should you choose 
to give it away for free from now on, it's your call.

- hardware(take precious apple for example): they create 
prototype(maybe a dozen or even more...), then they have 
the hardware manufacturer to pay + their employees, 
> [prototype(s) cost] + [hardware manufacturer, i.e. 
foxconn] + [employees] -- I hope I'm not missing anything 
else than tax --
> let's assume for second the total cost is $10,000 to 
create 500 products, you sell everything and make your 
$10,000, correct? now, if you want to sell more, you 
have to "somehow", out of thin air!

If that's not a huge difference... I don't know what 

But don't worry, none of them would be in business if 
they would not make enough money, how much is enough? 
that's for them to decide.
Comment by Dorin Duminica [http://www.delphigeist.com] on February 14, 12:49

Delphi Whopping 2011 Growth More Details 

1) Most schools wouldn't use Delphi even if it was 
free. Otherwise they would be already using 
FPC/Lazarus everywhere, and it doesn't happen. Most 
schools teach what they think is a mainstream 
language (if they need to teach a foreign "human 
language", do they usually teach English or Italian? 
Why?) I wonder if the "poor school" lament is not 
used by teachers needing a free copy of Delphi for 
their own work... maybe using some skilled studends 
as a cheap workforce...
2) Your computation of development costs is pretty 
simplistic. Do you really believe that after sales 
have repaid costs you can give software away for 
free? Guess you fire your developers and staff and 
sell everything else after a product is released, 
because they still costs (and of course your company 
needs profits). 
Comment by Luigi D. Sandon on February 16, 10:53

Delphi Whopping 2011 Growth More Details 

@VRV - Not 300 people in the RadStudio team and not at
this salary. 10k avg. (About -> ALT + TEAM -> view

I think the number (72Mio or 75 Mio.) does come from
Nicks comment on this blog - this very likely EMB 2010
in Summary including DS-Auditor sales.

I have my numbers worst case vs. best case. DB Tools
has been estimated to be 65-68 Mio by 2011, very
constant growth. 100 Mio from Wikipedia can be found
every year since 2007, more the goal. The bandwidth
for RadStudio is from 20. Mio to 28Mio imho. (the
numbers are ... over the thumb... not very reliable)

Not everyone at EMB is a senior developer, not every
employee is a developer and not everyone is S.F. S.F.
is expensive as my Hometown, maybe little cheaper. In
the Western World - income is very much the same ... 

In every case, no need to worry about Delphi and no
need to worry about EMB, even in worst case. Since I
follow them (they have been listed at the NASDAQ) -
they can sell ... they had tremendous increases sometimes.

Comment by Michael Thuma on March 12, 17:03

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