[lally] Re: SPLA
- From: John Freer <john_freer@xxxxxxxxx>
- To: lally@xxxxxxxxxxxxx
- Date: Wed, 7 Jun 2006 08:47:49 -0700 (PDT)
And the risk premium your company would be taking on by not getting
paid up-front.
Might also be interesting if there was a third party financier who
would give you a lump sum and handle the lease details.
JF
--- kumar pandey <pandeykum@xxxxxxxxx> wrote:
> Remy sure what you said is logical. The big assumptions are the
> number of
> years and the number of upgrades.
>
> K
>
>
> On 6/7/06, remy <remy@xxxxxxxxxxxxxxxxxxxxxx> wrote:
> >
> > Hi Kumar,
> >
> > It would seem that MicroSoft would have this information based on
> the tons
> > of data they collect. T think another way to look at this would
> be in
> > terms
> > of finance. If I purchase a piece of software for $100 today and
> I am
> > expected to upgrade the software for next 5 years at $20 per
> year, then I
> > can determine the PV of the upgrades plus the $100. That would be
> the
> > total
> > PV of that piece of software. if I were going to lease it, I
> would want to
> > make sure that the PV of the lease is equal to the PV of the
> purchase and
> > the upgrades.
> >
> > Remy
> >
> >
> > >Hi folks,
> > >Let me welcome you to the group by putting up a question which I
> have
> > been
> > >struggling with for the past few days.
> > >
> > >Many of you in the hi-tech world are probably aware that
> Microsoft has
> > >developed its Services Provider License Agreement (SPLA) to sell
> software
> > >on a pay as you use basis. this allows enterprises or web
> developers to
> > >subscribe for the software on a monthly basis as opposed to
> paying a huge
> > >upfront cost. The financial advantages are obvious to the
> consumers,
> > they
> > >get to pay off the software costs as business operating expense
> as
> > opposed
> > >to capital costs.
> > >
> > >My question is around pricing. Microsoft says their software
> under SPLA
> > >is priced so that customers pay the same amount, over the life
> of the
> > >software,in paying on a monthly basis, as they would have paid
> > >upfront. Now, how does Microsoft or any other software
> developer be able
> > >to predict the life of a software when technology is changing so
> fast?
> > >
> > >Does anyone have any idea what industry standards are? Does
> anyone have
> > >any idea on how software could be priced and packaged
> differently.
> > >
> > >Any thoughts, insights will be appreciated.
> > >
> > >--
> > >Kumar Pandey
> > >Chief Operations Officer
> > >Flatburger Inc.
> >
> >
> >
> >
>
>
> --
> Kumar Pandey
>
-----------------------------------
John J Freer, P.E.
Program Manager, DayStar Technologies, Inc.
jfreer@xxxxxxxxxxxxxxx / 518.383.4600 x324 (office)
john_freer@xxxxxxxxx / 518.441.9647 (cell)
Other related posts:
