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  • Subject: Re: Counting users - rip-off
  • From: rob@xxxxxxxxx
  • Date: Thu, 2 Aug 2001 11:25:13 -0500


<snip>
This flies in the face of the reasons why companies might be encouraged to
network computers.
<endsnip>

No, it really doesn't.  Instead of one big server, you network.  For
example, one of the reasons that our EDI runs on a separate 400 here is to
avoid tiered pricing.

Rob Berendt

==================
A smart person learns from their mistakes,
but a wise person learns from OTHER peoples mistakes.


                                                                                
                                         
                    MacWheel99@aol.com                                          
                                         
                    Sent by:                   To:     MIDRANGE-L@midrange.com  
                                         
                    owner-midrange-l@mi        cc:                              
                                         
                    drange.com                 Subject:     Re: Counting users 
- rip-off                                 
                                                                                
                                         
                                                                                
                                         
                    08/01/2001 12:52 PM                                         
                                         
                    Please respond to                                           
                                         
                    MIDRANGE-L                                                  
                                         
                                                                                
                                         
                                                                                
                                         




> Why do you consider this a rip-off. Purchasing licenses for a
predetermined
> number of users is one of the market norms, for ANY platform

If the nature of your enterprise is such that ALL YOUR COMPUTER USERS will
need to use the SAME SOFTWARE PACKAGE then it is reasonable for the vendor
to
price their software based on the power of the platform & number of users
on
it.

But if the nature of your enterprise is such that you need a computer
system
powerful enough to support MULTIPLE SOFTWARE PACKAGES each with different
bunches of users, and a few overlaps where some people use more than one
package, but very few users in all of them, then this pricing model is
saying
you need to have different software packages on DIFFERENT COMPUTERS so that

none of the computers exceed the user count that any one package is
imposing
on the total box network.

This flies in the face of the reasons why companies might be encouraged to
network computers.

Thus, the decision whether to have all the packages on one computer system,

or to have different computer systems for different packages, needs to
factor
in what pricing methods the packages are using.

Riddle me this.
You have a home PC & it has enough power to do word processing & spread
sheet
comfortably.  You decide to get a more powerful Pentium & other hardware
ingredients so that you can download graphical pages from the internet
faster.
Your Windows Vendor notices that you are now on a more powerful PC box &
demands a higher software license price because you are getting more value
from Windows because you are now getting more value from everything on that

box.  Is that fair & reasonable?  A lot of 400 software is priced that way.

Or put it another way.
You have a network of PCs.
A handful of clients are doing accounting software
Another handful are doing Auto Cad engineering work
A few more are doing payroll

Should the payroll software be priced based on 2-3 people using the
software,
the fact that you have 50 clients on the network even though only 2-3 are
using this particular software, or the fact that you have 1,000 employees
in
the payroll master?

The sense of rip-off is that many people have been accustomed to paying for

software on one basis, and now some company jacks up the price.

I think a license for software support should be related to the number of
people who are likely to be calling the vendor for tech support, or sending

questions to MIS to forward to the vendor.  In the payroll example, 2-3 is
the number of users of the software, plus perhaps management personnel
outside the users who might want to know if the package can be upgraded to
support this or that idea not now being exploited.

MacWheel99@aol.com (Alister Wm Macintyre) (Al Mac)


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