RE: Tier based vs. User based pricing

I agree that it may be a wash, but if you are currently on tier pricing,
it is impossible to justify to your superiors that you need to give
MAPICS more money just because you want to install(and use)Domino.  

-----Original Message-----
From: Ed Taylor [mailto:ETaylor@AdvLog.com]
Sent: Monday, November 22, 1999 9:27 AM
To: 'MAPICS-L@midrange.com'
Subject: RE: Tier based vs. User based pricing


The theory behind both user based and tier pricing is 
essentially the same.  That is that the software vendor can attract new
clients at an entry level, and then have them invest more money as their
usage grows.  This can be measured by either system size as in the old
main
frame days or user count.  The end result is the same, the 
software vendor wants additional revenue as usage increases. The MAPICS
world experienced problems with the
tier pricing scheme when XA clients wanted to implement
COM which is a real system hog.  This forced many users
to purchase more powerful systems and incur higher system upgrade fees.
I
think that if anyone actually studied 
the net effect of the two pricing schemes it would be a 
wash in terms of actual $$$ invested.


-----Original Message-----
From: Steve Wolfe [mailto:swolfe@hufcor.com]
Sent: Monday, November 22, 1999 9:11 AM
To: 'MAPICS-L@midrange.com'
Subject: RE: Tier based vs. User based pricing


We are currently evaluating a move from tier to user based pricing.  The
tier pricing is "old school" the assumption was all the AS/400 is used
for is MAPICS, so it made sense to use tiered pricing.  Today is
different. The MAPICS "usage" of your AS/400 may be rather small because
of domino or other non-MAPICS uses. I am negotiating to move to User
based pricing so that whatever I want to use our AS/400 for, I can. 

Steve Wolfe 
Hufcor, Inc. 

-----Original Message-----
From: Arnold, Robert [mailto:RMArnold@hpproducts.net]
Sent: Monday, November 22, 1999 7:40 AM
To: 'MAPICS-L@Midrange.com'
Subject: Tier based vs. User based pricing


I'm looking at upgrading our AS/400.  The real cost in the upgrade is
the
MAPICS software licensing fee.  The other dilemma is that to go to user
based pricing, cost is still an issue.  My question is what are other
MAPICS
users using Tier or User based pricing and why.  Your input will be
greatly
appreciated.

Thanks,

Bob.
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