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  3. November 2001

Re: Tiered pricing - a vendor's perspective

Of course, pricing is subject to competition.  It doesn't matter so much
what the value of your software is.  It doesn't matter how much you spent to
write it.  Pricing is subject to market conditions.

I began designing my ILE framework for Web applications prior to IBM's
release and promotion of it's Easy400 CGI framework.  Both products target
ILE language developers.  Both products provide similar function.  IBM's
product if free.  My product starts at $500.  IBM is able to offers free
developer tools because application that are built on those tools lead to an
increase in "system" sales.  I don't sell hardware.  You can probably imagin
how difficult it is for a small vendor to compete against IBM's free
product.  But hey, that's free enterprise.

Nathan M. Andelin
www.relational-data.com

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