Re: Ridiculous software transfer fees (was EDI and Inovis from Library Data)

[Larry Bolhuis <lbolhuis@xxxxxxxxxx>]

Reply to many of the posts in this thread.

First: Reminds me of the Buddy Hacket 'dentist' routine. His first 
customer asks why his bill is so high and he says he has a HUGE student 
loan debt to pay. The customer asks when it will be paid off? Hackett 
says: At this rate, about 2PM!

Unfortunately when software companies are bought out (as MANY have been 
in recent years) the new owners want to get their money back, so they 
raise prices and cut support. One of our customers is currently paying 
$25,000 annual support fee for EDI on a 270. Despite being down since 
Yesterday they can't even get a call back! (They have called every half 
hour all day.) So who do you suppose will pay the gigantic fines form 
the auto makers for failure to send ASNs etc? I'm sure the EDI vendor 
will find a clause that keeps them from paying...

Another vendor I deal with was purchased recently. Prices have gone 
through the roof while sales have gone to zero.  I think the new guy 
just wants to get one or two customers at gigantic prices then he'll 
have just the two to support! Someone mentioned selling 2 at $100 
instead of 4 at $50 and there is logic to that even if it's twisted.

Personally I believe the pricing is inevitable. Look at any company who 
is still owned by the guy who started it. Such software is reasonably 
priced (Brad Stone, Jim Sloan are a couple examples.) Support is good, 
responsiveness is good. But as soon as someone else takes over it's 
PURELY about the money. They don't give two giggles or a grin about the 
customer, they don't know them or want to. They want profits. Profits 
profits profits.

One of my customers moved from a model 500 to a model 720. They had paid 
about $300,000 life to date with their ERP vendor for software, 
maintenance, training, support etc over 13 years. The up-tick for the 
500 to 720? $1,300,000. You guessed it, it was right after an 
acquisition. The CIO LAUGHED at the vendor and hung up. They called back 
with $700,000 offer a few days later - Laughter and 'click' followed. 
Eventually a number in five figures was negotiated but it wasn't easy.

So who ya gonna call?  I can't answer that. But someone in this thread 
said essentially: "Know thy vendor." I second that.

 - Larry

Bob Cagle wrote:
> Scott
>
> I totally feel your frustration.