Live by these 7 rules if you want your budget to survive technological changes.
I met Billy Bumluck at a video store in the early 80s. We were both proud owners of new VCRs; he was browsing in the Beta section, I was looking at VHS. “You use VHS?” he asked. When I nodded, he said “Too bad, man. Beta is the only way to go — better picture, more reliable, and it has Sony behind it. Your VHS machine will be a doorstop next year, so enjoy it while you can!”
We talked a bit more, and I found out he was a guitarist and technology fan, so we kept in touch. A couple years later, I got a call. “Hey, you gotta check out this new Amiga computer! It has separate chips for graphics and audio, does sampling better than a Fairlight, and has some great games.” So I went over to his house, and sure enough, it ran circles around the Macs, Ataris, and PCs of its day. “No more Beta mistakes for me,” said Billy. “This baby’s made by Commodore, and considering they’ve sold 6 million Commodore-64s, I don’t think they’ll be going out of business any time soon.”
Well, after the Amiga died, Billy had enough. “Okay,” he said, “I’m getting a Mac. There’s a fantastic program called Vision, it’ll wipe the floor with your Master Tracks Pro. It will be the perfect complement to my Sequential Circuits and Oberheim synthesizers.” And for a while, it looked like Billy made the right choice, especially when Opcode added hard disk recording to MIDI sequencing. “Craig, nothing’s going to stop those Opcode guys. No one else is doing hard disk recording and MIDI, I’d buy stock in them if I could.”
Then Opcode was sucked into the BHDC (Black Hole of Dead Companies). Billy was pretty shaken this time, and had heard stories of Apple going through problems. So about a year ago, he decided to switch to a PC. “There’s a billion of ?em out there. This is one standard that won’t die on me.” I told him Apple wasn’t going anywhere, but he was adamant. “Nope, no more obsolete stuff for me, and no more little companies. I’m going out right now and getting Logic Windows!”
Billy never was the same after Emagic dropped Windows support. Last I heard, after his savings evaporated with the collap
se of Enron and Worldcom, he went to a back-to-nature commune in Montana, with no electricity or television. Oh yes, and with an acoustic guitar to replace his Yamaha G10 MIDI guitar.
There’s a little of the Billy Bumluck magic in all of us. My Commodore CDTV sits alongside some other ill-chosen relics of technology past, each one representing a costly mistake. But they seemed like such good ideas at the time…
With technology changing on a seemingly daily basis, you don’t just buy gear any more — you have to be a soothsayer. How can you protect yourself? How can you stay ahead of technology and bankruptcy court? Here’s the scoop.
Rule #1: You will Make Mistakes
Resign yourself to it. If huge companies can make mistakes after spending zillions of dollars on focus groups and product research, so can you. Maybe you got sucked in by the ads, maybe you just got taken by something that didn’t pan out. The object is to minimize these mistakes so they don’t devastate your checking account.
Some people end up with Purchasing Paralysis, where they won’t buy anything out of fear that something better is coming around the corner. Well, something is, so get used to it. The secret to avoid getting burned is not to lose money on an investment.
For example, suppose you bought an original, 16-bit Alesis ADAT for $4,000. As you sit mousing around with your shiny new DAW, that might have seemed like a mistake. But if you did projects on it that earned you $10,000, it was a wise investment indeed — you more than doubled your money (better than what you’d get from a bank, for sure).
Always consider return on investment (ROI). I was debating whether or not to buy a Minidisc when it first came out, because they were pretty expensive back then, and the survival of the format was in question. But I did, and wrote enough articles about MD and how to use it that I made money on the deal. MD could disappear tomorrow, and my buying it would not have been a mistake.
So the question is not “Am I buying something that will become obsolete?” because you know that you are. The correct question is “Can I amortize the value of this investment before it becomes obsolete?” If buying something will make you more money than not buying it, get out the checkbook. Simple as that.
Let’s take a look at the other rules to follow…
Rule #7: The best way to cope with technology is to put it in its place
I have a hammer that’s 20 years old. I’m sure that since then, the metals used in them have been improved, the handles have become easier to grip, and the weight is now distributed more ergonomically. But you know what? It drives nails just fine.
My main hardware synthesizer is 16 years old. My DAT deck is a TASCAM DA-30 (the original one). Then again, I have some fantastic soft synths, and two flat screen monitors. The point is, I don’t let technology rule me (“You have to buy a better DAT, you must go surround”). I rule technology: I pick and choose those things that are going to help my music.
I also either jump in as an early adopter, pay the premium price, and milk something for all it’s worth, or get in on the tail end of a technology when it’s proven, reliable, and inexpensive. I bought one of the first Panasonic DA7 digital mixers, and now you can buy them on blowout at a fraction of what I paid. Do I mind? Not at all: I’ve gotten so much use out of it, and made so much off of projects done with it, that not buying it would have been a major mistake.
I’ll leave you with this: when it comes to technology, you’re the boss. Fulfilling your needs is all that should matter. Good luck making the right choices!
To read the full article see: Tech Gear Roulette