Software Technology Pricing Models - Symbian announces new pricing models - hzrn.com

I am interested in information regarding software technology pricing models. I have an opporunity to roll-out a new application where each client intallation will be used across many devices (not personal computers). The business success of each client site will dictate the number of devices which will use the application. In this regard, I am particulary interested in a straightforward description of Microsoft's recently introduced subscription model, and some well thought out commentary on that model. However, I am a small developer, so I want information regarding the position of licensees and developers concerning annual subscription and/or per seat pricing licenses. Accordingly, I want feedback from both the licensee side of the table and the developer side of the table on the pluses and minuses of a subscription pricing model.

Hello Eight, I will answer this in two parts - first describe Microsoft's Licensing 6.0 - benefits / drawbacks to the developer and purchaser of a software subscription There are a number of good summaries of Microsoft Licensing 6.0 starting with http://www.microsoft.com/licensing/programs/sa/default.asp which have links to describe the family of subscription and volume plans available from Microsoft. It may be useful to get the data straight from Microsoft without interpretation and to see how they sell it to their users. A couple related news / commentary articles at CNET http://news.com.com/2009-1001-257434.html?legacy=cnet&tag=st.ne.ni.metabox.metacomm http://news.com.com/2100-1001-257390.html?legacy=cnet&tag=st.ne.ni.metacomm.ni This latter one has quite a few numbers in it relating to the frequency of updates and relative costs. A number of related articles and links at CIO http://www.cio.com/archive/011502/meter.html the main article that goes into a lot of background of what Microsoft expected to get from it and the reaction of several customers. http://www.cio.com/archive/011502/meter_sidebar1.html a more detailed look at three major reasons why Microsoft did this http://www.cio.com/archive/011502/meter_sidebar2.html a table summarizing the best choices based on your update frequency and so on. The Street looking at the financial impacts of LIcensing 6.0 http://www.thestreet.com/tech/ronnaabramson/10032470.html including predictions from several analysts. For more references, search strings such as commentary microsoft subscription provide a variety of references. You can also get another 38 references by searching at http://news.google.com/ and entering microsoft licensing 6.0 many of these other news articles refer to the response by other vendors - primarily Sun or Linux vendors - to the general Microsoft approach to selling software. These same kind of responses may be used by your competitors as well. Many of the sites are international as well - if you have not considered that aspect, these may be helpful to lead you to a solution that works internationally. Benefits / Drawbacks: Drawing on some of these articles, the primary characteristics of a subscription plan are: - a more "reliable" revenue stream (cost of ownership) to both the vendor and the user. This aspect has advantages and disadvantages to both sides. A buyer might wish to defer license fees in recession or during other business problem periods. They have much less flexibility to do so with a subscription plan. As the business expands, the buyer might make do with fewer licenses as well for similar reasons. - it may help "lock in" product upgrades. You get service and support only for the "current" version under the subscription plan (with a required transition period). From Microsoft's perspective, this may get more users to adopt .Net or other new products. You may have the same kind of plan if you consider this approach. However, many users find product upgrades to be both a benefit and a disruption of their business. The company I work for deferred the upgrade from NT 4 to 2000 by at least a year due to that kind of concern and the required period to get all the supporting applications to be usable on the new system. - it can be a controversial approach to selling a product. The Microsoft case certainly made the news. However, there are other companies that have done this for some time. SPSS Inc comes to mind in this respect. They used to sell their product for large time sharing computers and required a pretty substantial fee for continued use. A few of the articles I mentioned before refer to other companies that have done this. If you don't mind offending a few possible users to get the other benefits, a subscription may work for your company. Also note that if your application is "really useful", expect some free software group to form to produce a work alike product and cut into your revenue model. It may also be instructive to look at what other companies are doing with software subscription models and how they sell it to their users. A search with software subscription advantages brings up sites such as http://www.openconnect.com/subscription.html Open Connect which provides 3 month, 6 month, ... 24 month subscriptions to their products. http://www.bhrsoftware.com/erp/advantages.html BHR Software has "perpetual", "usage", and "subscription" pricing of their ERP system. http://usa.autodesk.com/adsk/index/0,,612598-123112,00.html Autodesk has a subscription plan available for their AutoCAD products. and so on. Each of these sites will phrase the advantages of subscriptions from the viewpoint of the customer. With a little rephrasing of the words, you can get the disadvantages as well (e.g., good due to predictable costs =>

Symbian announces new pricing models::
Symbian Limited has announced new alternative software license pricing models designed to enable handset manufacturers to target lower cost device market
http://www.geekzone.co.nz/content.asp?contentid=5828HOME

can't adjust costs ...). Don't hesitate to ask for further information in a clarification request. In particular, if there is some aspect I have missed - please ask. There appears to be plenty of material available to draw from. --Maniac