Author Topic: Is competition speeding things up?  (Read 18766 times)

Offline JamesH

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Is competition speeding things up?
« on: 01/23/2016 09:20 am »
Is anyone else getting the impression that the recent plethora of launches is being sped up as a result of Musk/Bezos competition?

Previously, BO have been pretty secretive and slow releasing information about flights, now its coming thick and fast. SpaceX suddenly managed a RTLS, with very little warning, and released a DragonFLy video actually made last November.

It used to be government handbags at dawn, has that batton been handed over to commercial entities?
« Last Edit: 01/23/2016 09:23 am by JamesH »

Offline IRobot

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Re: Is competition speeding things up?
« Reply #1 on: 01/23/2016 10:34 am »
R&D accomplishments are not linear with time.

Offline Lars-J

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Re: Is competition speeding things up?
« Reply #2 on: 01/23/2016 10:53 am »

Is anyone else getting the impression that the recent plethora of launches is being sped up as a result of Musk/Bezos competition?

No. Not at all. SpaceX own launch rate is behind their own optimistic schedules, even accounting for the CRS7 failure. They are simply catching up to their own schedule, going as fast as they can.

Long term? Maybe. But short and medium term term? Heck no. Blue Origin is far too secretive to have that kind of effect on anyone.

Offline JamesH

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Re: Is competition speeding things up?
« Reply #3 on: 01/23/2016 12:11 pm »

Is anyone else getting the impression that the recent plethora of launches is being sped up as a result of Musk/Bezos competition?

No. Not at all. SpaceX own launch rate is behind their own optimistic schedules, even accounting for the CRS7 failure. They are simply catching up to their own schedule, going as fast as they can.

Long term? Maybe. But short and medium term term? Heck no. Blue Origin is far too secretive to have that kind of effect on anyone.

So complete coincidence that SpaceX release the DragonFly video the day before a BO flight? I defo. get the feeling there is some friendly billionaire competition going on here...!

Offline Silmfeanor

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Re: Is competition speeding things up?
« Reply #4 on: 01/23/2016 01:21 pm »

Is anyone else getting the impression that the recent plethora of launches is being sped up as a result of Musk/Bezos competition?

No. Not at all. SpaceX own launch rate is behind their own optimistic schedules, even accounting for the CRS7 failure. They are simply catching up to their own schedule, going as fast as they can.

Long term? Maybe. But short and medium term term? Heck no. Blue Origin is far too secretive to have that kind of effect on anyone.

So complete coincidence that SpaceX release the DragonFly video the day before a BO flight? I defo. get the feeling there is some friendly billionaire competition going on here...!

Yes. It was released partly because NASA had a press release / update ready about commercial crew. The actual test was months ago.
So, complete coincidence. Unless NASA is part of this race? Which it is not. Your feeling is not substantiated by actual events.
As other posters have noted, this R&D and actually flying missions is not something that is done to promote flashy videos. There are lead times. Actual competition speeding up takes time; think the scale of months or years over year or decade-long schedules. Not something like releasing a video a day after.

Offline Danderman

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Re: Is competition speeding things up?
« Reply #5 on: 01/23/2016 01:52 pm »
Any competition now is between 2 entities still in development mode.

Real competition is for customers, not bragging rights.  The best analogy is the Cold War Space Race. Since the competition was not economic, it was not sustainable.


Offline Elvis in Space

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Re: Is competition speeding things up?
« Reply #6 on: 01/23/2016 01:52 pm »
Sit back and look at all the players including Spacex, Arianespace, Russia, NASA, BO, Virgin Galactic, etc and it looks less like direct competition and more like they are just making each other aware of what can be done. Certainly there are competitive forces at work but the feeling to me is more like they are encouraging each other. Just a vibe I guess but it's a strange business. Not making widgets here.
« Last Edit: 01/23/2016 01:53 pm by Elvis in Space »
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Online sanman

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Re: Is competition speeding things up?
« Reply #7 on: 01/23/2016 02:00 pm »
Competition certainly sped things up during the 1950s and 1960s of the Cold War, so there's no reason why private space competition shouldn't achieve a speed-up as well.

It will be even more interesting to see how much of a speed-up from competition occurs once space tourism gets rolling, with plenty of paying customers.

I'm also wondering if competition won't spur imitation - ie. competitors switching to adopt each others' approaches when they see them working better. How many ideas will SpaceX and Blue borrow from each other?
Will Richard Branson now start looking around for a VTVL as he sees others marching ahead with that approach?

Offline Craftyatom

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Re: Is competition speeding things up?
« Reply #8 on: 01/23/2016 03:19 pm »

Is anyone else getting the impression that the recent plethora of launches is being sped up as a result of Musk/Bezos competition?

No. Not at all. SpaceX own launch rate is behind their own optimistic schedules, even accounting for the CRS7 failure. They are simply catching up to their own schedule, going as fast as they can.

Long term? Maybe. But short and medium term term? Heck no. Blue Origin is far too secretive to have that kind of effect on anyone.

So complete coincidence that SpaceX release the DragonFly video the day before a BO flight? I defo. get the feeling there is some friendly billionaire competition going on here...!

The biggest counterargument to this, IMO, is that until the plume appeared, nobody actually knew anything about the flight.  The only way to have known beforehand is if somebody was watching the FAA releases very closely, and something tells me nobody at SpaceX is going to get paid to do that.

Personally, I think even the idea of posting media reactively is ridiculous, but even more compelling is the fact that SpaceX likely didn't even know Blue was going to be doing anything when the Dv2 video was posted.
All aboard the HSF hype train!  Choo Choo!

Offline oldAtlas_Eguy

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Re: Is competition speeding things up?
« Reply #9 on: 01/23/2016 05:28 pm »
Posted this in another thread about the recent Raptor contract but it really belongs here.

Just looked at the SpaceNews article for the BO test flight yesterday and there is one tidbit of information and that is that the BE-4 prototype tests NLT EOY 2016. This is 1 year in advance of SpaceX so you are correct that SpaceX is likely to increase their spending to do their prototype test for Raptor NLT EOY 2017. Also this means that by 2019 there will be a possible 2 MethaLox 500Klbf class engines in production. Things are moving quickly and SpaceX needs to keep moving ahead rapidly or they may get left behind in the reusability race that has started.

This also means that if ULA continues sufficient funding of Vulcan then they could fly the first MethaLox orbital 1st stage NLT EOY 2019. SpaceX would not be far behind with a 1st stage MethaLox vehicle NLT EOY 2021. Their development may see an acceleration.

There is a competition starting but it is for a highly inexpensive reusable 1st stage and the competitors include SpaceX, BO, ULA and ESA. I am wondering if ULA may change its Vulcan design to allow for later propulsive land landing recovery, since Vulcan is still in design (paper) phase but with a BE-4 looking like existing with exact performance values and (form fit function) the design is likely to quickly transition to critical design and production. SpaceX's effort is a year behind and that will spur them to speed up.

Offline HIP2BSQRE

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Re: Is competition speeding things up?
« Reply #10 on: 01/23/2016 05:50 pm »
Posted this in another thread about the recent Raptor contract but it really belongs here.

Just looked at the SpaceNews article for the BO test flight yesterday and there is one tidbit of information and that is that the BE-4 prototype tests NLT EOY 2016. This is 1 year in advance of SpaceX so you are correct that SpaceX is likely to increase their spending to do their prototype test for Raptor NLT EOY 2017. Also this means that by 2019 there will be a possible 2 MethaLox 500Klbf class engines in production. Things are moving quickly and SpaceX needs to keep moving ahead rapidly or they may get left behind in the reusability race that has started.

This also means that if ULA continues sufficient funding of Vulcan then they could fly the first MethaLox orbital 1st stage NLT EOY 2019. SpaceX would not be far behind with a 1st stage MethaLox vehicle NLT EOY 2021. Their development may see an acceleration.

There is a competition starting but it is for a highly inexpensive reusable 1st stage and the competitors include SpaceX, BO, ULA and ESA. I am wondering if ULA may change its Vulcan design to allow for later propulsive land landing recovery, since Vulcan is still in design (paper) phase but with a BE-4 looking like existing with exact performance values and (form fit function) the design is likely to quickly transition to critical design and production. SpaceX's effort is a year behind and that will spur them to speed up.

There is added pressure for all space rocket companies.  What people have not said - what will this competition do to the market for A6?  Will A6 have to change?  How does this affect OTK?  I think Vulcan has to change now or they will be building a rocket for the wrong decade.   The rockets in 5 -10 years maybe a lot different than they are today.  Also what affect will this have for SLS?  SpaceX and BO may be flying reusable first stages before the 2nd flight of SLS.


Offline HIP2BSQRE

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Re: Is competition speeding things up?
« Reply #11 on: 01/23/2016 05:53 pm »
Posted this in another thread about the recent Raptor contract but it really belongs here.

Just looked at the SpaceNews article for the BO test flight yesterday and there is one tidbit of information and that is that the BE-4 prototype tests NLT EOY 2016. This is 1 year in advance of SpaceX so you are correct that SpaceX is likely to increase their spending to do their prototype test for Raptor NLT EOY 2017. Also this means that by 2019 there will be a possible 2 MethaLox 500Klbf class engines in production. Things are moving quickly and SpaceX needs to keep moving ahead rapidly or they may get left behind in the reusability race that has started.

This also means that if ULA continues sufficient funding of Vulcan then they could fly the first MethaLox orbital 1st stage NLT EOY 2019. SpaceX would not be far behind with a 1st stage MethaLox vehicle NLT EOY 2021. Their development may see an acceleration.

There is a competition starting but it is for a highly inexpensive reusable 1st stage and the competitors include SpaceX, BO, ULA and ESA. I am wondering if ULA may change its Vulcan design to allow for later propulsive land landing recovery, since Vulcan is still in design (paper) phase but with a BE-4 looking like existing with exact performance values and (form fit function) the design is likely to quickly transition to critical design and production. SpaceX's effort is a year behind and that will spur them to speed up.

Why does SpaceX have to speed up MethaLOX? If you are  1- 2 years behind - how does it matter?

Offline nadreck

Re: Is competition speeding things up?
« Reply #12 on: 01/23/2016 05:58 pm »
One aspect of what is going on between BO and SpaceX right now is that their competitors have to take everything each company does more seriously because the various rationalizations of how this new way of doing things won't affect serious customers of serious launch providers are far less effective if there are two eccentric billionaires doing it: A, it is a lot less eccentric and probably even makes business sense; B, it isn't just a lucky shot.

From the ranks of the potential customers for BO and SpaceX the perception of each success that either company has rubs off on the other one and the potential customers will, barring any spectacular failures, expect that anything both companies can do should be practical for any company.

While I think Jeff and Elon might spend a very small amount of effort trying to one up each other (and most of that effort is probably in trying to think up effective tweets) the successes and failures of one may influence not the overall effort, but sometimes scheduling the effort, on some project. Raptor vs BE-4 may be an example of that.
It is all well and good to quote those things that made it past your confirmation bias that other people wrote, but this is a discussion board damnit! Let us know what you think! And why!

Offline HIP2BSQRE

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Re: Is competition speeding things up?
« Reply #13 on: 01/23/2016 05:59 pm »
Competition is not helping Areojet.

Offline Darkseraph

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Re: Is competition speeding things up?
« Reply #14 on: 01/23/2016 06:02 pm »
I don't think so. Certainly there is a competition for visibility by putting out slick commercial videos of the achievements thus far.

But many of these companies started out around the same time, in the early 00s coming right after the internet boom and the time it takes to develop technologies like this is hard to compress, even with a ton of money. So right about now, they're on the steep ascending part of the curve, when all that trial and error comes together.

:/
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Online Coastal Ron

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Re: Is competition speeding things up?
« Reply #15 on: 01/23/2016 06:27 pm »
I don't think so. Certainly there is a competition for visibility by putting out slick commercial videos of the achievements thus far.

But many of these companies started out around the same time, in the early 00s coming right after the internet boom and the time it takes to develop technologies like this is hard to compress, even with a ton of money. So right about now, they're on the steep ascending part of the curve, when all that trial and error comes together.

Important points.  So essentially the competition between Blue Origin and SpaceX is not affected by each others accomplishments, but I would hope they are now inspiring the next wave of competition - those that want to stay up with (or even surpass) what Blue Origin and SpaceX are doing.
If we don't continuously lower the cost to access space, how are we ever going to afford to expand humanity out into space?

Offline oldAtlas_Eguy

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Re: Is competition speeding things up?
« Reply #16 on: 01/23/2016 07:04 pm »
For orbital launches the F9 can be considered as the first generation VTVL reusable first stage and the BE-4 and Raptor powered first stages to be the second generation VTVL reusable first stages. The difference being that the MethaLox vehicles are likely to have twice or more times the number of flight life than the F9. Plus the refurbishment costs may be lower for these vehicles as well such that on a comparison the per flight costs of these second generation 1st stages may represent a real reduction in costs of as much as $5M per flight. Making the cost of the 1st stage per flight as a percentage of the flight costs <10%. Now add a reusable US and the costs can drop another $10M per flight get the per flight prices below $20M.

But it will not happen overnight. These second generation 1st stages will be showing up somewhere around 2020-2022 ULA's Vulcan notwithstanding which may fly as early as 2019. Unless ULA changes their minds about VTVL, Vulcan would be classed as a first generation reusable 1st stage even though it could have a large flight number for the engines the costs per flight will still be significant.

Offline FutureSpaceTourist

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Is competition speeding things up?
« Reply #17 on: 01/23/2016 07:08 pm »
I agree that SpaceX and BO are going at their respective paces, it's just with each company doing multiple things some events naturally occur close together.
However, competition has clearly affected ULA's plan for Vulcan & ESA's for Ariane 6. It's great to see the industry being more innovative.
« Last Edit: 01/23/2016 07:09 pm by FutureSpaceTourist »

Offline HIP2BSQRE

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Re: Is competition speeding things up?
« Reply #18 on: 01/23/2016 09:05 pm »
For orbital launches the F9 can be considered as the first generation VTVL reusable first stage and the BE-4 and Raptor powered first stages to be the second generation VTVL reusable first stages. The difference being that the MethaLox vehicles are likely to have twice or more times the number of flight life than the F9. Plus the refurbishment costs may be lower for these vehicles as well such that on a comparison the per flight costs of these second generation 1st stages may represent a real reduction in costs of as much as $5M per flight. Making the cost of the 1st stage per flight as a percentage of the flight costs <10%. Now add a reusable US and the costs can drop another $10M per flight get the per flight prices below $20M.

But it will not happen overnight. These second generation 1st stages will be showing up somewhere around 2020-2022 ULA's Vulcan notwithstanding which may fly as early as 2019. Unless ULA changes their minds about VTVL, Vulcan would be classed as a first generation reusable 1st stage even though it could have a large flight number for the engines the costs per flight will still be significant.

I think ULA is in a world of hurt going forward in 2020+ timeframe.  What stops BO for competing for the EELV contract around 2020?  BO said they want millions of people in space - well to get there - there needs to be  demand.  The number of DOD launches will be down, they would be competing with SpaceX and BO for Govt. launches.  The market has to expand going forward. 

Offline AncientU

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Re: Is competition speeding things up?
« Reply #19 on: 01/23/2016 09:33 pm »
Posted this in another thread about the recent Raptor contract but it really belongs here.

Just looked at the SpaceNews article for the BO test flight yesterday and there is one tidbit of information and that is that the BE-4 prototype tests NLT EOY 2016. This is 1 year in advance of SpaceX so you are correct that SpaceX is likely to increase their spending to do their prototype test for Raptor NLT EOY 2017. Also this means that by 2019 there will be a possible 2 MethaLox 500Klbf class engines in production. Things are moving quickly and SpaceX needs to keep moving ahead rapidly or they may get left behind in the reusability race that has started.

This also means that if ULA continues sufficient funding of Vulcan then they could fly the first MethaLox orbital 1st stage NLT EOY 2019. SpaceX would not be far behind with a 1st stage MethaLox vehicle NLT EOY 2021. Their development may see an acceleration.

There is a competition starting but it is for a highly inexpensive reusable 1st stage and the competitors include SpaceX, BO, ULA and ESA. I am wondering if ULA may change its Vulcan design to allow for later propulsive land landing recovery, since Vulcan is still in design (paper) phase but with a BE-4 looking like existing with exact performance values and (form fit function) the design is likely to quickly transition to critical design and production. SpaceX's effort is a year behind and that will spur them to speed up.

Why does SpaceX have to speed up MethaLOX? If you are  1- 2 years behind - how does it matter?

There is no basis for saying Blue is a year ahead... this is only true if you assume the USAF funded development is the single path for Raptor.  Full scale component testing is underway at Stennis (almost two years running) and McGregor, so we'll see what is revealed when SpaceX discusses Mars plans this year. 

I wouldn't be surprised if they are each testing a full scale engine this time next year, but Blue doing that would be the greater surprise. They were talking a while back of having an engine for Vulcan in 2018 IIRC.
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Offline WindyCity

Re: Is competition speeding things up?
« Reply #20 on: 01/23/2016 10:25 pm »
I don't think so. Musk is focussed on Mars colonization. Bezos aims at suborbital space tourism. BO isn't close to launching satellites. If the company could compete in that business, then a rivalry would likely spring up. Right now BO probably does not weigh heavily on Musk's mind.
« Last Edit: 01/24/2016 03:59 am by WindyCity »

Offline Space Ghost 1962

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Re: Is competition speeding things up?
« Reply #21 on: 01/23/2016 11:19 pm »
OP's Musk/Bezo's competition speeding things up:

Only between the two of them.

 1. It would seem that Bezo's has more of a need to "gradatim ferociter", from yearly now up to monthly, so as to make good on beginning a suborbital tourism business. Otherwise Musk walks away with too much attention/business (putting more sats/capsules in orbit, grabbing millions in launch business to Bezo's $0 revenue).

 2. It would seem that Musk needs to make real and operational actual stage recovery and reuse. He can't mess up as much on stage recovery (less Bullwinkle Moose "oh well, next time for sure") because Bezo's is doing it repeatedly (twice, maybe three-four times by the time Musk next flies). Worse, he's behind on reflight, Bezo's beat him again, and even risked his first recovered booster to do so, unlike Musk.

However, recovered boosters have not really affected the rest of the community. I've even recently heard them talked down by SC vendors, which is pure dumb to me. After asking extensive questions, it seems to be a form of "fear bark" reaction from big, slow, expensive SC vendors who don't want to have to deal with any kind of change.

A few fast moving SC vendors have been enjoying the 40% reduction in launch costs right now through SX being available, but even more the fact they don't have to wait as long for a launch opportunity will more total launch frequency.

The most aggressive want to be the first to be on a reused stage, because they want to appear to "bury" competition not just on price, but on speed from order to on-orbit services time. Because then the advantage of the big bus sats might be undercut, and operators might consider 2-3 smaller sats to replace a bigger one.

On the HSF side, suborbital tourism might seem closer to reality, which then makes the next step of orbital space tourism that much more easier to fund. As well as making CRS/crew programs more immediate as well.

So what might enhance these effects still more, beyond making routine recovery/reuse? Activities/programs that began to rely on the increased launch frequency as a common expectation instead of a one time circus act.

If that were to happen, then the launch side would split into "only ELV" and "usually recovery/reuse" providers, where frequency/cost would become bimodal, with a maturation "relaxation time" of many years where the economics of each would battle it out to remake the sat market, operators of communications/imaging/sensing platforms data vending, and finally launch services market. Possibly erratically.

HSF would follow, phase delayed, down a similar path to a different degree.

Offline JamesH

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Re: Is competition speeding things up?
« Reply #22 on: 01/24/2016 09:49 am »

Is anyone else getting the impression that the recent plethora of launches is being sped up as a result of Musk/Bezos competition?

No. Not at all. SpaceX own launch rate is behind their own optimistic schedules, even accounting for the CRS7 failure. They are simply catching up to their own schedule, going as fast as they can.

Long term? Maybe. But short and medium term term? Heck no. Blue Origin is far too secretive to have that kind of effect on anyone.

So complete coincidence that SpaceX release the DragonFly video the day before a BO flight? I defo. get the feeling there is some friendly billionaire competition going on here...!

The biggest counterargument to this, IMO, is that until the plume appeared, nobody actually knew anything about the flight.  The only way to have known beforehand is if somebody was watching the FAA releases very closely, and something tells me nobody at SpaceX is going to get paid to do that.

Personally, I think even the idea of posting media reactively is ridiculous, but even more compelling is the fact that SpaceX likely didn't even know Blue was going to be doing anything when the Dv2 video was posted.

The BO flight was sort of expected a few days before, as there was a licence in place for a flight on Thursday. If the internet knew about it, I would SpaceX to.


But I sort of agree anyway, that I doubt SpaceX (p)reactively post videos to try and reduce competitors release impacts.

Offline inventodoc

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Re: Is competition speeding things up?
« Reply #23 on: 01/24/2016 03:24 pm »
Competition is not helping Areojet.

increased competition speeds the demise of those who cannot compete.

in competition, there are winners and losers. winners reap the rewards.

Offline oldAtlas_Eguy

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Re: Is competition speeding things up?
« Reply #24 on: 01/24/2016 03:52 pm »
There is a mention of BO debuting an orbital LV by 2020. The specs "details" will be in a presentation this year.
http://www.nasaspaceflight.com/2016/01/blue-origin-successful-reuse-test-new-shepard/

I imagine this would be after the first set of full duration burns on the BE-4 prototype has been accomplished this year so do not look for this release/presentation until the later part of the year. SpaceX's release of the F9v1.1 and FH in 2012 was after the test articles tests had showed that a production engine of a specific capability and weight could be manufactured. The same will be true of the relationship of the BE-4 prototype test article and BE-4 production engine. The production engine will have more thrust but it may not be that much larger than the prototype. What a working full scale prototype gets you is all the verified design engine details needed for the design of the LV. The real question from the standpoint of the BO LV being a competitor is how many BE-4s will the 1st stage have?

From the standpoint of other new boosters being debuted, this would be shortly after Vulcan debut (6-12 months). But unlike Vulcan BO's booster may have several test flights (2-3) that includes recovery (landing) tests. So that operationally out the gate it would be a reusable 1st stage LV. Vulcan would not, requiring several years to obtain its reusability goals achieved by testing like SpaceX on operational flights that has excess performance.
« Last Edit: 01/24/2016 05:58 pm by Chris Bergin »

Online sanman

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Re: Is competition speeding things up?
« Reply #25 on: 01/24/2016 04:11 pm »
But how will competition affect the bottom line of SpaceX and Blue Origin?

Fine, we know that old space companies will certainly take a hit. But if SpaceX has been counting on certain profit margins to keep its cash flow running smoothly, then will Blue's entry as a competing bidder for launch contracts then cramp SpaceX's style?

It's well known that Silicon Valley tech giants like Apple and Google have firm unofficial agreements with each other to not poach each others' employees. Will we see all-out cut-throat competition between SpaceX and Blue Origin, or will they abide by certain gentlemen's agreements to not cut each other down to size?


Offline oldAtlas_Eguy

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Re: Is competition speeding things up?
« Reply #26 on: 01/24/2016 05:41 pm »
But how will competition affect the bottom line of SpaceX and Blue Origin?

Fine, we know that old space companies will certainly take a hit. But if SpaceX has been counting on certain profit margins to keep its cash flow running smoothly, then will Blue's entry as a competing bidder for launch contracts then cramp SpaceX's style?

It's well known that Silicon Valley tech giants like Apple and Google have firm unofficial agreements with each other to not poach each others' employees. Will we see all-out cut-throat competition between SpaceX and Blue Origin, or will they abide by certain gentlemen's agreements to not cut each other down to size?
I think it will be a more gentleman's competition with the same aggressive reaching for an ever lowering of $/kg to LEO, and all other places. Other commercial LV providers beware.  :'(

Offline edkyle99

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Re: Is competition speeding things up?
« Reply #27 on: 01/24/2016 05:54 pm »
I don't see Blue Origin and SpaceX in competition.

Blue is developing a suborbital joy-rider and a "small" (compared to Falcon 9 and the EELVs) orbital launch vehicle that seems to be also for joy-riding customers.  SpaceX is striving for EELV-Medium and Heavy class orbital payloads, with bills paid by governments and big "commercial" comsat firms.  ULA, ILS, Arianespace, and Orbital-ATK are SpaceX competitors.

 - Ed Kyle
« Last Edit: 01/24/2016 05:56 pm by edkyle99 »

Offline Space Ghost 1962

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Re: Is competition speeding things up?
« Reply #28 on: 01/24/2016 11:50 pm »
I believe the OP's intent was the very visible exchange between Musk and Bezo's, mostly over reusing VTVL rocket stages.

They clearly have some kind of a competition going, and they've chosen strategies and partners that are exclusive and non-cooperative, even though as Ed Kyle says, they don't need to seen that way as they have basically different business interests in launch.

And even Bezo's says he is a fan of VTVL rockets, so you'd think these guys would have more to agree about than they quite obviously do.

So yes, they should not be "competitors" as things currently appear. But, ... clearly only a fool would see that they would not be. At least they are not looking quite so silly as months back, so the "foot in mouth" aspect seems to be absent.

Own observations of both are that they are both very driven, but in very different ways. Staff, organization, and delegation are also very different. Bezo's compartmentalizes and pops things out, Musk enjoys more selling the grand vision as it happens, in the moment. Neither are a walk in the park to work with/for, from most reports.

Offline Lars-J

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Re: Is competition speeding things up?
« Reply #29 on: 01/25/2016 03:06 am »

I believe the OP's intent was the very visible exchange between Musk and Bezo's, mostly over reusing VTVL rocket stages.

But a very visible exchange means nothing as far as real progress goes. Would SpaceX still try to land stages without Blue landing New Shepard? Yes. Would Blue land New Shepard if SpaceX wasn't trying to land stages? Yes.

They have similar goals, and started around the same time, but are working different paths to get there.

Online sanman

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Re: Is competition speeding things up?
« Reply #30 on: 01/25/2016 05:47 am »
I don't see Blue Origin and SpaceX in competition.

Blue is developing a suborbital joy-rider and a "small" (compared to Falcon 9 and the EELVs) orbital launch vehicle that seems to be also for joy-riding customers.  SpaceX is striving for EELV-Medium and Heavy class orbital payloads, with bills paid by governments and big "commercial" comsat firms.  ULA, ILS, Arianespace, and Orbital-ATK are SpaceX competitors.

 - Ed Kyle

Perhaps it will always be in the nature of the media to overdramatize competition between SpaceX and Blue Origin, as the  "personal rivalry" angle will attract more eyeballs.

But if Bezos' goal really is "millions of people working in space" then surely he'll likewise be aiming for the similarly heavy class rockets that SpaceX and NASA are pursuing.

It sounds like Blue Origin will be unveiling their version of Falcon-1 later this year. But just as SpaceX quickly transitioned from Falcon-1 to Falcon-9, likewise it may be possible that Blue will similarly move towards more meaningfully larger scales once they've achieved orbital flight - presumably because that's where the money is.

If/when Blue creates their version of Falcon-9, then how will their engine's unique differences dictate the overall design of their rocket? It sound like BE-3U will be their Mvac, and they could use multiple BE-4's on the booster stage to achieve a payload capacity comparable to Falcon-9.

Surely Blue won't leave all the heavier lifting to Vulcan? Isn't the idea that ULA will take care of cargo, while Blue will lift people to space?

Offline hkultala

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Re: Is competition speeding things up?
« Reply #31 on: 01/25/2016 06:28 am »
I don't see Blue Origin and SpaceX in competition.

Blue is developing a suborbital joy-rider and a "small" (compared to Falcon 9 and the EELVs) orbital launch vehicle that seems to be also for joy-riding customers.  SpaceX is striving for EELV-Medium and Heavy class orbital payloads, with bills paid by governments and big "commercial" comsat firms.  ULA, ILS, Arianespace, and Orbital-ATK are SpaceX competitors.

 - Ed Kyle

Perhaps it will always be in the nature of the media to overdramatize competition between SpaceX and Blue Origin, as the  "personal rivalry" angle will attract more eyeballs.

But if Bezos' goal really is "millions of people working in space" then surely he'll likewise be aiming for the similarly heavy class rockets that SpaceX and NASA are pursuing.

It sounds like Blue Origin will be unveiling their version of Falcon-1 later this year. But just as SpaceX quickly transitioned from Falcon-1 to Falcon-9, likewise it may be possible that Blue will similarly move towards more meaningfully larger scales once they've achieved orbital flight - presumably because that's where the money is.

If/when Blue creates their version of Falcon-9, then how will their engine's unique differences dictate the overall design of their rocket? It sound like BE-3U will be their Mvac, and they could use multiple BE-4's on the booster stage to achieve a payload capacity comparable to Falcon-9.

Surely Blue won't leave all the heavier lifting to Vulcan? Isn't the idea that ULA will take care of cargo, while Blue will lift people to space?

Sea level optimized BE-3 has thrust of 490 kN, which is very close to the thrust of Merlin 1C.

So BE-3U is not an engine for upper stage of Falcon 1 class vehicle. It's engine for upper stage for lifting at least 5 tonnes to LEO, soyuz/delta II class, and even single one can be used for upper stage of much bigger vehicle.





Offline guckyfan

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Re: Is competition speeding things up?
« Reply #32 on: 01/25/2016 07:22 am »
Sea level optimized BE-3 has thrust of 490 kN, which is very close to the thrust of Merlin 1C.

So BE-3U is not an engine for upper stage of Falcon 1 class vehicle. It's engine for upper stage for lifting at least 5 tonnes to LEO, soyuz/delta II class, and even single one can be used for upper stage of much bigger vehicle.

True. A BE-3U can be the engine of a very capable upper stage. However if they want to build a one BE-4 first stage as indicated by Tory Bruno and make it reusable that stage would have to be very heavy to be able to land, cutting deep into overall capability of the vehicle.

If this launch vehicle is mostly a testbed for later bigger rockets that's not a problem. They can learn a lot and then build the bigger much more efficient version with multiple BE-4 on the first stage.

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Re: Is competition speeding things up?
« Reply #33 on: 01/25/2016 02:56 pm »
I don't see Blue Origin and SpaceX in competition.

Blue is developing a suborbital joy-rider and a "small" (compared to Falcon 9 and the EELVs) orbital launch vehicle that seems to be also for joy-riding customers.  SpaceX is striving for EELV-Medium and Heavy class orbital payloads, with bills paid by governments and big "commercial" comsat firms.  ULA, ILS, Arianespace, and Orbital-ATK are SpaceX competitors.

 - Ed Kyle


Actually, here's the quote from Bezos I was looking for:

http://www.nasaspaceflight.com/2016/01/blue-origin-successful-reuse-test-new-shepard/

Quote
“We’re already more than three years into development of our first orbital vehicle. Though it will be the small vehicle in our orbital family, it’s still many times larger than New Shepard.

So he's talking about their "Falcon 1", and it sounds like the rest of the family will be significantly larger than that.
But from what hkultala said, Blue's "Falcon 1" will be a lot more capable than SpaceX's Falcon-1 was.

So how does BE-3U likely compare against Mvac?
« Last Edit: 01/25/2016 03:12 pm by sanman »

Offline oldAtlas_Eguy

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Re: Is competition speeding things up?
« Reply #34 on: 01/25/2016 04:55 pm »
I don't see Blue Origin and SpaceX in competition.

Blue is developing a suborbital joy-rider and a "small" (compared to Falcon 9 and the EELVs) orbital launch vehicle that seems to be also for joy-riding customers.  SpaceX is striving for EELV-Medium and Heavy class orbital payloads, with bills paid by governments and big "commercial" comsat firms.  ULA, ILS, Arianespace, and Orbital-ATK are SpaceX competitors.

 - Ed Kyle
Actually, here's the quote from Bezos I was looking for:

http://www.nasaspaceflight.com/2016/01/blue-origin-successful-reuse-test-new-shepard/

Quote
“We’re already more than three years into development of our first orbital vehicle. Though it will be the small vehicle in our orbital family, it’s still many times larger than New Shepard.

So he's talking about their "Falcon 1", and it sounds like the rest of the family will be significantly larger than that.
But from what hkultala said, Blue's "Falcon 1" will be a lot more capable than SpaceX's Falcon-1 was.

So how does BE-3U likely compare against Mvac?
A very rough estimate of a single engine BE-4 1st stage with a BE-3U US with only 60mt of prop (3X that of current suborbital) would be ~7.8mt to LEO and 1.9mt to GTO-1800. This would be large enough for their capsule to a 285km circular but no further. Up circle a few times (1 or 2 days) and then back. I estimate the per person tourist ticket price at around $7-10M.

A 3 core heavy would be ~23mt to LEO and ~5mt to GTO.

A 3X sized vehicle with larger core diameter with 3 BE-4 engines and a dual engine BE-3U US with 3X the prop (180mt) would have even more performance than the 3 core heavy probably more like 30mt LEO and 8mt GTO-1800.

Core diameters likely 3.6m for single engine and 5.2m for 3 engine.

Online sanman

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Re: Is competition speeding things up?
« Reply #35 on: 01/25/2016 05:01 pm »
So would Bezos be able to bid for CRS contracts? Will Blue's first orbital rocket provide that capability?

Offline Tuts36

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Re: Is competition speeding things up?
« Reply #36 on: 01/25/2016 05:13 pm »
Nice written article here that intersects with this discussion - and it's actually in google news section today:

http://arstechnica.com/science/2016/01/forget-blue-origin-vs-spacex-the-real-battle-is-between-old-and-new-ideas/

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Re: Is competition speeding things up?
« Reply #37 on: 01/25/2016 05:14 pm »
Argg - ninja'd - just came here after reading it.  :P

Offline Space Ghost 1962

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Re: Is competition speeding things up?
« Reply #38 on: 01/26/2016 02:19 am »
So would Bezos be able to bid for CRS contracts? Will Blue's first orbital rocket provide that capability?

Spacecraft? Docking/berthing? Prox ops? Certification? Margin for a 51.6 inclination orbit?

"Jeez, yah that's kind of what I thinka when I lob Justin Bieber into orbit for a coupla loops around the planet ..."

"Nah, downtcha got it, mebbie next year."

Offline Danderman

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Re: Is competition speeding things up?
« Reply #39 on: 01/26/2016 06:21 am »
The question on the table is whether competition is speeding things up, not who is winning or who is going to do what next.

The answer is kind of complicated. And I am writing as someone who was involved in setting up the competition in the first place, some 25 years ago. Back in the Olden Days, there was no competition - NASA was responsible for civil space launch. The Launch Services Purchase Act of 1990 stopped NASA from engaged in space launch, and instead required procurement of launch services from vendors selected via competitive bidding.

The first result was a drop in costs to NASA, but that mostly came from removing NASA management from much of the process. The launch vehicles of the 1990s were not inheritently cheaper than those flying prior to the enactment of the LSPA.  More to the point, launch vehicle providers did not act like we expected. What we expected was for launch service providers to cut prices, either via modifications to their vehicles, or economies of scale - the expectation was that companies would bid on price, and lower launch costs would generate a larger market, which would invoke more economies of scale, and we would all be living on the Moon Real Soon Now.

Instead, the near monopoly on launch services held by Boeing and Lockheed, as they bought everyone up, held up prices.

There was a burst of effort to develop radical new launchers, but that went nowhere, except for some failed launch attempts and prototypes that didn't fly much.

So, when Elon entered the scene, the launch market was ULA with high prices, and Russian competition, hindered by ITAR and reluctance of the US government to fly Russian, and bad marketing by the Russians, and the occasional political snit.  The existence of the Russians, however, killed off any new small US launcher, since unit costs were important enough to NASA that they would fly on cheaper Russian launchers for small programs. And then Orbital's Minuteman flight program killed Athena dead, leaving this country with no small domestic commercial launcher, which probably would be useful today.

Elon was the first US player with capital to understand the impact of lower launch costs on enlarging the market, a process that we are now seeing for the first time.  And the impact of SpaceX in grabbing contracts is significant.


This is just the beginning. Price competition should have an amazing impact on the launch market over the next few years, barring a series of catastrophes.

Offline Space Ghost 1962

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Re: Is competition speeding things up?
« Reply #40 on: 01/26/2016 06:40 pm »
Instead, the near monopoly on launch services held by Boeing and Lockheed, as they bought everyone up, held up prices.

That was because they had to maintain the illusion of "expensive sats" with "cheap but necessary launch". "It would be a shame for that nice, shiney sat to not make it to orbit, with that neglected thruster."

"We can oversight those cheap LV's, but only if you buy our high cost sats".

Quote
So, when Elon entered the scene, the launch market was ULA with high prices, and Russian competition, hindered by ITAR and reluctance of the US government to fly Russian, and bad marketing by the Russians, and the occasional political snit.

Actually, the Russian's saw themselves as little different from the prior mentioned group, so created a market contradiction that had the effect of scrwing them and building up launch cost "inflation".

Quote
The existence of the Russians, however, killed off any new small US launcher, since unit costs were important enough to NASA that they would fly on cheaper Russian launchers for small programs.

Boeing with SeaLaunch tried to exploit this as well. Again, Russian aggrivations made this difficult - they really didn't want to understand how to make it work to suit, they just wanted it to either work their way or not at all.

Quote
And then Orbital's Minuteman flight program killed Athena dead, leaving this country with no small domestic commercial launcher, which probably would be useful today.

Yes.

Quote
Elon was the first US player with capital to understand the impact of lower launch costs on enlarging the market, a process that we are now seeing for the first time.  And the impact of SpaceX in grabbing contracts is significant.

Musk needs things to work by different rules (in that way not unlike the Russians), and he is greatly resented for that. His contracts are yet to be significant, yet to cross a certain threshold.

The most significant thing is that he let the industry first attempt to exploit his new rules. Some are balking at that. No problem, he then expands into specific sat mfr/services under a tight agreement that can't be disintermediated. And he still encourages the volume side of the market from anyone wishing to get an advantage over the stolid, turgid, "big" sat firms who are desperately, devoutly wishing for a return to the "old ways".

Quote
This is just the beginning. Price competition should have an amazing impact on the launch market over the next few years, barring a series of catastrophes.

You are more optimistic. Suspect we'll need a crash of various new and old sat providers. Ironically, this includes PlanetLabs - some of the investment from the large sat providers are trying to force acquisitions of "dangerous to them" technologies by it, so as to have a single acquisition to "clean up" the industry following Musk demise.

Which is nuts but almost word for word what was told a few weeks back.

I think we'll have chaos for a while.

Offline oldAtlas_Eguy

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Re: Is competition speeding things up?
« Reply #41 on: 01/26/2016 07:41 pm »
That's the hope for expansion of payloads due to lower launch costs.

In that SpaceX's lead in the lowering of launch costs and the continuing of lowering the $/kg price seemingly occurring by upgrades or other methods happening every 2.5 years, will spur all the other providers to try to keep up. Thus generally lowering launch costs which then expands the payload market from those payloads that were not viable business cases before to become viable.

This is the market expansion cases we are waiting on. The drop from $8,000-10,000/kg to less than $2,000/kg. F9 is now $4,000/kg with the FH at just above $2,000/kg. It is the hope of reusability that F9 drops below $3,000/kg and FH down toward $1,500/kg. Expansion of reusability to include Upper Stages dropping prices further especially for FH toward $1,000/kg could make investing in large scale space projects viable. It would definitely make the large constellation sat networks for comm or sensors more of a business viable endeavor able to compete with any terrestrial systems.

This goal to lower the general $/kg to such a low level that the demand for launch increases. Not only that but the required lift per launch also increases. This demand will increase SpaceX profits by being the go to launch provider maxing out SpaceX's capability at all four of its pads for a launch rate of >48 launches per year or a profit from launches of >$200M per year. This for SpaceX is a twofold goal one to lower the cost for going to Mars and secondly generating the profits to be able to fund going to Mars. If an FH has an internal cost to SpaceX of less than $40M per launch then SpaceX can then send 2-3 FH payloads to Mars in 1 synod with most of the profits going toward the payloads being lofted by the FH toward Mars.

BO has a different goal but effectively it is also fired by a lowering of the general $/kg as well.  The fist generation orbital LV a possible singe engine BE-4 could have a $/kg as low as $3,000/kg. Their second generation vehicle a possible 3X sized LV but still single core could have a $/kg as low as $1,500/kg. All due to the magic of hardly any engine refurbishment or replacement between flights from a cleaner fuel. But this is not BO's basic goal but the goal of a much reduced $/person price to expand the tourist and other (government and corporate) to orbit passengers demand. Starting at around $6-10M per passenger and lowering to less than $4M/passenger with the US reusable on the 2nd gen LV. This puts the orbital price per passenger at about 50X and eventually lowering to just 10X the sub orbital market prices. If only 1/10 the number of passenger per year then takes an orbital tourist flight than that of the number doing a suborbital tourist flight per year then there would be up to 40 tourist flying to orbit each year enough to require 8 flights that carry 5 passengers each every year. Suddenly there are dozens of crew/passenger flights per year going to at least LEO.

With more demand prices drop and with dropping prices more demand. SpaceX's bulk cargo and BO's passenger service could once demand starts increasing will keep it rising as they both persue  their goals. Eventually SpaceX and BO will offer services in each others forte, SpaceX offering tourist flights and BO providing bulk cargo to orbit. Prices will continue to drop and demand continue to rise.

This is the future we hole that SpaceX and BO can create.

Offline rayleighscatter

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Re: Is competition speeding things up?
« Reply #42 on: 01/26/2016 08:50 pm »

Elon was the first US player with capital to understand the impact of lower launch costs on enlarging the market, a process that we are now seeing for the first time.

Except the market isn't enlarging, it's flat and forecast to contract in the next 10 years.

Offline Danderman

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Re: Is competition speeding things up?
« Reply #43 on: 01/26/2016 10:15 pm »

Elon was the first US player with capital to understand the impact of lower launch costs on enlarging the market, a process that we are now seeing for the first time.

Except the market isn't enlarging, it's flat and forecast to contract in the next 10 years.

That would be news to the emerging space launch companies preparing to orbit payloads in the 100 kg range, a market that really didn't exist that long ago.

And I guess OneWeb with their hundreds of satellites won't make a difference.


Offline Lars-J

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Re: Is competition speeding things up?
« Reply #44 on: 01/26/2016 10:16 pm »

Elon was the first US player with capital to understand the impact of lower launch costs on enlarging the market, a process that we are now seeing for the first time.

Except the market isn't enlarging, it's flat and forecast to contract in the next 10 years.

Who made that prediction? I'd love to revisit that one in a decade.

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Re: Is competition speeding things up?
« Reply #45 on: 01/26/2016 10:42 pm »
Elon was the first US player with capital to understand the impact of lower launch costs on enlarging the market, a process that we are now seeing for the first time.  And the impact of SpaceX in grabbing contracts is significant.

That's the hope for expansion of payloads due to lower launch costs.

So where have we seen this before?

I immediately think of Henry Ford, recognizing that if he paid his workers a decent enough wage, that they too could become customers who could afford to buy his mass-produced assembly line vehicles.

I think of the drop in cellphone prices, which has brought them within reach of 3rd world consumers by the many  hundreds of millions.

Charles Taylor would probably quibble over whether SpaceX and Blue Origin are market disruptors - because apparently to qualify as a disruptor, you have to not just displace existing business models (the way Uber does), but you have to also be using some novel technology to do so (it's not clear that SpaceX or Blue Origin are really doing that)

So if Musk and Bezos aren't really using any previously unknown technology to pull off their trick, then why the heck couldn't all of this have been done before? Why were the monopolies/duopolies able to stay intact all this time? Why wasn't this Gutenberg-ian competition able to reach this sector before? Just merely because of high upfront capital costs?

« Last Edit: 01/26/2016 10:46 pm by sanman »

Offline Borklund

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Re: Is competition speeding things up?
« Reply #46 on: 01/26/2016 11:20 pm »
So if Musk and Bezos aren't really using any previously unknown technology to pull off their trick, then why the heck couldn't all of this have been done before? Why were the monopolies/duopolies able to stay intact all this time? Why wasn't this Gutenberg-ian competition able to reach this sector before? Just merely because of high upfront capital costs?
Because progress is not as smooth as you would be led to believe from reading the history books. The right person at the right time with the right resources makes all the difference. Up until a year ago, there was no cheap, quick, temperature-independent Ebola test. It took an internet science fair competition and a 16 year old American girl to come up with one. She did not use any previously unknown technology to pull off her trick. It seems so obvious in hindsight, but apparently it just didn't occur to anyone working professionally in medicine, at least not at the decision making level, that refrigeration and weeks long test times are unnecessary hindrances when it comes to combating viruses spreading rapidly in tropical climates, and to make a product to fix those issues. Perhaps many people at the time of the Ebola outbreak in West Africa thought to themselves "wouldn't it be great if we had a quicker, better way to check for Ebola?". But nothing happened until Olivia Hallisey turned on the news one day.

It would be lazy to just point the finger and blame institutional thinking or greediness of corporations. It's just a fact that some people are more creative in their thinking, and even fewer of those people are poised to strike when opportunity arises.

Online sanman

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Re: Is competition speeding things up?
« Reply #47 on: 01/27/2016 12:00 am »
LOL, fair enough - but all it takes is a "sellout" who feels more motivated to undermine a particular monopoly than to preserve and cash in on it. The monopoly-preservers are usually the ones reaping the revenues from the status quo.

That strategy seems to be increasingly being applied across the board, against a variety of industries and markets.

Yet there are only a handful of "new space" companies trying to bust the status quo. Clearly, making a rocketship isn't as easy as making a model-T or a Wright Bros Kittyhawk airplane in your workshop.

Will we ever see that gap being bridged - ie. the gap between the small Wright Bros workshop and the giant engineering facilities of a Boeing/Lockheed/Rockwell/etc?

When I was a kid, I read Heinlein's "Rocketship Galileo", and marveled at how a group of teenagers under the guidance of an experienced mentor could engineer their own moon rocket. I then read Heinlein's "The Man Who Sold The Moon", which similarly had a tycoon and his business partners making a moon rocket - a bit more plausible as a premise.

I guess Howard Hughes and Stanley Hiller missed the boat. It's only now in the age of the internet billionaire that we can see an Elon Musk or a Jeff Bezos with the resources to come forth to act like Prometheus. It seems that only the personality-driven enterprise can dare to do the Tom Swift type of risky adventurism that any sane/sober corporate board of directors wouldn't touch with a 10-foot pole.

The economy is full of cycles, oscillations and swings - so how much can we attribute the swing away from cautious consensus boardroom-driven decision-making towards the Steve Jobs style of chief/honcho-driven initiatives as the new driver responsible for the latest progress in space innovation?
« Last Edit: 01/27/2016 12:36 am by sanman »

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Offline Danderman

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Re: Is competition speeding things up?
« Reply #49 on: 01/29/2016 02:49 pm »

Online sanman

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Re: Is competition speeding things up?
« Reply #50 on: 01/29/2016 03:02 pm »
Actually, that is a story about investment dollars, not launch markets.

Well, competition is attracting more investment, which is necessary to accelerate and deepen progress.

Another issie is perhaps whether the conditions underpinning this current competition are sustainable

http://fortune.com/2016/01/28/pentagon-congress-spacex-competition/

Will regulatory creep somehow stall competition? Will there be technology patent fights and litigation wars down the road which also snarl up progress?

What happens if there's no ROI from Mars on an investor-relevant timeframe? Could it result in an investor revolt one day?
« Last Edit: 01/29/2016 03:22 pm by sanman »

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Re: Is competition speeding things up?
« Reply #51 on: 01/31/2016 04:22 pm »

Offline Lar

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Re: Is competition speeding things up?
« Reply #52 on: 01/31/2016 05:24 pm »
Competition is shaking up the market, even while speeding it up:


http://www.fool.com/investing/general/2016/01/31/will-spacex-put-russia-out-of-the-space-business.aspx

Take anything  you see at fool with a giant grain of salt... and check what they're pumping lately...  (they are on "the cable companies are in for it" a lot lately... I stopped caring what they were pumping but it's something )
« Last Edit: 01/31/2016 05:25 pm by Lar »
"I think it would be great to be born on Earth and to die on Mars. Just hopefully not at the point of impact." -Elon Musk
"We're a little bit like the dog who caught the bus" - Musk after CRS-8 S1 successfully landed on ASDS OCISLY

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Re: Is competition speeding things up?
« Reply #53 on: 01/31/2016 07:15 pm »
Competition is shaking up the market, even while speeding it up:


http://www.fool.com/investing/general/2016/01/31/will-spacex-put-russia-out-of-the-space-business.aspx

Take anything  you see at fool with a giant grain of salt... and check what they're pumping lately...  (they are on "the cable companies are in for it" a lot lately... I stopped caring what they were pumping but it's something )

Well, I think they have a point about how the longtime Russian leverage with space is now going to take a big dive as the private players price them out of the market.

Offline guckyfan

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Re: Is competition speeding things up?
« Reply #54 on: 01/31/2016 07:25 pm »
Well, I think they have a point about how the longtime Russian leverage with space is now going to take a big dive as the private players price them out of the market.

At the present ruble exchange rate they can go way down.

Offline The Amazing Catstronaut

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Re: Is competition speeding things up?
« Reply #55 on: 01/31/2016 10:52 pm »
Yup - Russia can compete purely by the virtue of having a currency that is worth less hard value than the production value of some of their coins.
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Offline Danderman

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Re: Is competition speeding things up?
« Reply #56 on: 01/31/2016 11:11 pm »
Well, I think they have a point about how the longtime Russian leverage with space is now going to take a big dive as the private players price them out of the market.

At the present ruble exchange rate they can go way down.

Russian launch contracts are typically made in US dollars. So, in theory, the Russian firms could drop their prices. I don't think ILS will drop their share, though, so that would limit any lessening the price of Proton, which is the only Russian launch vehicle on the market right now that is launched by Russians.

Offline yoram

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Re: Is competition speeding things up?
« Reply #57 on: 01/31/2016 11:22 pm »
Quote
I don't think ILS will drop their share, though, so that would limit any lessening the price of Proton, which is the only Russian launch vehicle on the market right now that is launched by Russians.


Proton is going to be replaced by Angara over the next years.

Do the Russians really need ILS? Perhaps they could remove the middleman and thus either lower the prices or increase their profit.

Online Exastro

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Re: Is competition speeding things up?
« Reply #58 on: 01/31/2016 11:55 pm »
Here's a different way of looking at the launch market:

If demand is inelastic and your market share is fixed by regulations, there's little incentive to reduce costs, especially if you're being paid a fixed percentage of those costs.  You just need to keep your prices low enough to prevent a new competitor from getting traction -- and the history of prospective competitors going belly-up suggests you don't have to work very hard at it.  Starstruck, American Rocket, Space Services Inc., etc. are cases in point.  All those guys had the goal of greatly reducing the cost of launch. 

It used to be said, "If you want to make a small fortune in the space business, start with a large fortune".

But the basic technology got better and made designing and building rockets easier.  And along comes a guy with a pile of his own money and the willingness to risk it on a bet he figured he'd probably lose, but somehow didn't.  Once he's in the mix, his incentive is to drive prices down, because even if the overall launch demand is inelastic, the demand for his company's services isn't: he can grow his business by gaining share in an overall static or even declining market.

Of course the long-term goal is push launch costs down enough to grow the market.  Nobody knows what the demand curve looks like when the cost drops below $1K/kg.  Hopefully we'll learn that in the next few years.

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Re: Is competition speeding things up?
« Reply #59 on: 02/01/2016 12:06 am »
I immediately think of Henry Ford, recognizing that if he paid his workers a decent enough wage, that they too could become customers who could afford to buy his mass-produced assembly line vehicles.

At the risk of going a bit off-topic, I don't think that old story is true.  Ford did raise his wages, but it doesn't make sense that he'd do it in the hope that his own workers would spend some small fraction of their extra pay buying his product.

If memory serves, the real reason was to reduce training costs due to rapid turnover.  Higher wages kept workers around longer, which increased their productivity enough to be worth the higher wages.

I'd guess that the cost of finding and training workers is a big part of what's keeping their payscale up in the space industry today.  Elon Musk probably doesn't expect his engineers to buy F9s.

Offline AncientU

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Re: Is competition speeding things up?
« Reply #60 on: 02/01/2016 04:22 pm »

Elon was the first US player with capital to understand the impact of lower launch costs on enlarging the market, a process that we are now seeing for the first time.

Except the market isn't enlarging, it's flat and forecast to contract in the next 10 years.

Which launch market are you describing here?
Is this forecast based on steady (or steadily increasing) launch prices?
« Last Edit: 02/01/2016 04:45 pm by AncientU »
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Offline muomega0

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Re: Is competition speeding things up?
« Reply #61 on: 02/01/2016 05:31 pm »
I immediately think of Henry Ford, recognizing that if he paid his workers a decent enough wage, that they too could become customers who could afford to buy his mass-produced assembly line vehicles.

At the risk of going a bit off-topic, I don't think that old story is true.  Ford did raise his wages, but it doesn't make sense that he'd do it in the hope that his own workers would spend some small fraction of their extra pay buying his product.

If memory serves, the real reason was to reduce training costs due to rapid turnover.  Higher wages kept workers around longer, which increased their productivity enough to be worth the higher wages.

I'd guess that the cost of finding and training workers is a big part of what's keeping their payscale up in the space industry today.  Elon Musk probably doesn't expect his engineers to buy F9s.

you may want to visit the Henry Ford Museum or read a few books on Ford.  Many state it was his greatest invention.

In the strictest sense, if every employee simply bought a car with the increased wage, its likely only to break even at best....a flat non expanding market.

Henry Ford Doubles the Minimum Wage
Quote from: QuotesfromHenryFord
Ford believed he was buying higher quality work from all his employees. “If the floor sweeper’s heart is in his job he can save us five dollars a day by picking up small tools instead of sweeping them out.”

“The owner, the employees, and the buying public are all one and the same, and unless an industry can so manage itself as to keep wages high and prices low it destroys itself, for otherwise it limits the number of its customers. One’s own employees ought to be one’s own best customers.”

It might have been just another of Ford’s wild ideas, except that it proved successful. In 1914, the company sold 308,000 of its Model Ts—more than all other carmakers combined. By 1915, sales had climbed to 501,000. By 1920, Ford was selling a million cars a year.

We increased the buying power of our own people, and they increased the buying power of other people, and so on and on,” Ford wrote. “It is this thought of enlarging buying power by paying high wages and selling at low prices that is behind the prosperity of this country.”

Ford told Garrett, “When business thought only of profit for the owners ‘instead of providing goods for all,’ then it frequently broke down.”
the exact opposite of trickle down....

Musk may want them to buy the new, not 100K, Tesla in few years....and a F9 later on..perhaps a ride on a reuseable F9 in between, but Musk likely knows they could not if it was kept expendable  :)
---

Competition means duplication and multiple competing parallel programs (e.g. Apollo) is expensive and the short time frame eliminated many options not ready for a less than decade goal.  The alternative is to pick winners and reduce the number of parallel paths eliminating the duplication, and providing adequate cash to speed up the 'winning', early selected option.  There are many cases where a slower speed results in a cheaper end result.  Only those with deep pockets have entered the 'competition'..do they have all the ideas?

Offline AncientU

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Re: Is competition speeding things up?
« Reply #62 on: 02/01/2016 06:10 pm »
<snip>
The alternative is to pick winners and reduce the number of parallel paths eliminating the duplication, and providing adequate cash to speed up the 'winning', early selected option.  There are many cases where a slower speed results in a cheaper end result.  Only those with deep pockets have entered the 'competition'..do they have all the ideas?

So long as you correctly pick the winners.
Command economies are a vast trove of evidence that we (humanity) are not good at doing this.
« Last Edit: 02/01/2016 06:12 pm by AncientU »
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Offline A_M_Swallow

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Re: Is competition speeding things up?
« Reply #63 on: 02/01/2016 07:09 pm »
<snip>
The alternative is to pick winners and reduce the number of parallel paths eliminating the duplication, and providing adequate cash to speed up the 'winning', early selected option.  There are many cases where a slower speed results in a cheaper end result.  Only those with deep pockets have entered the 'competition'..do they have all the ideas?

So long as you correctly pick the winners.
Command economies are a vast trove of evidence that we (humanity) are not good at doing this.

Governments tend to pick the biggest liar, the company paying the highest bribes followed by the loser who is threatening to fire workers. The loser can fire more workers in a week than a growing company hires in its first decade.

Offline AncientU

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Re: Is competition speeding things up?
« Reply #64 on: 02/01/2016 08:24 pm »
<snip>
The alternative is to pick winners and reduce the number of parallel paths eliminating the duplication, and providing adequate cash to speed up the 'winning', early selected option.  There are many cases where a slower speed results in a cheaper end result.  Only those with deep pockets have entered the 'competition'..do they have all the ideas?

There are many more cases where a slower speed results in a more expensive result.
The space industry is a study in such cost increases.

I'd suggest casting a wide net for entrants and ideas, kinda like being done in CRS plus Crew for ISS, and let ideas and results 'pick the winners.'  One day, USG can be out of the loop as is now the case in the satellite market.

« Last Edit: 02/01/2016 08:36 pm by AncientU »
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Offline erioladastra

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Re: Is competition speeding things up?
« Reply #65 on: 02/06/2016 04:55 pm »
<snip>
The alternative is to pick winners and reduce the number of parallel paths eliminating the duplication, and providing adequate cash to speed up the 'winning', early selected option.  There are many cases where a slower speed results in a cheaper end result.  Only those with deep pockets have entered the 'competition'..do they have all the ideas?

There are many more cases where a slower speed results in a more expensive result.
The space industry is a study in such cost increases.

I'd suggest casting a wide net for entrants and ideas, kinda like being done in CRS plus Crew for ISS, and let ideas and results 'pick the winners.'  One day, USG can be out of the loop as is now the case in the satellite market.



One detail not hit upon in this thread...   is that the more providers there are the more of a strain there is on NASA to work with all of them.  It takes a fair amount of resources for review and partnering with all the companies.  This does slow the process down.  I won't say it is the biggest drag but it is measureable.  Besides not having the resources to complete a review on time, you can miss stuff and is one factor in why requirements continue to change, which itself introduces further changes.

Online sanman

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Re: Is competition speeding things up?
« Reply #66 on: 02/08/2016 03:00 am »
At the risk of going a bit off-topic, I don't think that old story is true.  Ford did raise his wages, but it doesn't make sense that he'd do it in the hope that his own workers would spend some small fraction of their extra pay buying his product.

If memory serves, the real reason was to reduce training costs due to rapid turnover.  Higher wages kept workers around longer, which increased their productivity enough to be worth the higher wages.

I'd guess that the cost of finding and training workers is a big part of what's keeping their payscale up in the space industry today.  Elon Musk probably doesn't expect his engineers to buy F9s.

Alright, but at least Musk has made some comforting comments about not treating the launch market like a "rug bazaar" whereby you try to wring out as much payment from your customer as you can get away with.

I assume it was Steve Jobs who came up with the low-cost "app pricing" model in Apple's app store, figuring that by pricing apps very low, that it would encourage many more to make purchases.

I'm then wondering what the key thresholds are for price, which if broken through would put launch services within reach of whole new groups of customers who previously couldn't afford such services.





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