[lally] Re: SPLA

  • From: "Yogish Gowda" <ygowda@xxxxxxxxx>
  • To: lally@xxxxxxxxxxxxx
  • Date: Wed, 7 Jun 2006 13:22:14 -0400

Hi Kumar,

I found this spread sheet (in case you don't have this already) on MicroSoft
Website, its a comparison of different SPLA arrangements that client can
enter into with MS and it gives a general idea of the factors to be
considered (as mentioned by John and Remy) in a situation like yours.

Regards

Yogish


On 6/7/06, kumar pandey <pandeykum@xxxxxxxxx> wrote:

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.

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