[lally] Re: SPLA

  • From: John Freer <john_freer@xxxxxxxxx>
  • To: lally@xxxxxxxxxxxxx
  • Date: Wed, 7 Jun 2006 08:15:59 -0700 (PDT)

Is this question for software you wish to purchase or how to best
establish pricing for sofware you wish to sell.

If the former, go with open source solutions.

If the latter, you're effectively proposing a lease arrangement. 
Does your company want to be in the business of offering what are
basically leases?  There are a lot of issues there.  Many companies
wish to lease an asset, then have a buy option at the end for $1 so
that the asset can be capitalized.

There's a lot of complexity here.

What are you really asking?


--- 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.

John J Freer, P.E.
Program Manager, DayStar Technologies, Inc.
jfreer@xxxxxxxxxxxxxxx / 518.383.4600 x324 (office)
john_freer@xxxxxxxxx   / 518.441.9647 (cell)

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