I wonder what IBM thinks about this?... IBM has stated many times their intent
to increase SMB business, and has brought many new vendors to our platform.
They have offered systems at more competetive prices, to stimulate interest in
the platform, and so forth. It seems IBM is putting forth some effort to
invigorate our market, but with these predatory pricing issues with the
big-name vendors, I wonder how many accounts IBM is seeing walk away.
I guess it reminds me a little of OS/2... IBM had some great tech in there,
probably the best available at that time on the PC platform, but nobody could
find applications for it. The vendors were all focused on MS, so the OS/2
market just died. In our case, there are software solutions, but the potential
consumers can't afford it, so they walk away....
-----Original Message-----
From: midrange-l-bounces@xxxxxxxxxxxx
[
mailto:midrange-l-bounces@xxxxxxxxxxxx]On Behalf Of Larry Bolhuis
Sent: Thursday, July 12, 2007 4:10 PM
To: Midrange Systems Technical Discussion
Subject: Re: Ridiculous software transfer fees (was EDI and Inovis from
LibraryData)
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.
midrange.com
