Option & Software Pricing
Laurent GUERBY <[email protected]> Sat, 23 Jul 2005 22:07:53 +0200
| Newsgroups | gmane.comp.misc.free-software-business |
|---|---|
| Message-ID | <[email protected]> |
Link from /., interesting point of view on software license/maintenance pricing with an eye of FOSS by Robert Lefkowitz: http://www.onlamp.com/pub/a/onlamp/2005/07/21/software_pricing.html << [...] At this point, the astute reader will have noticed that the sum of the value of the option for the upgrades plus the options for the maintenance is $18.80 + $62.50 = $81.30. That is to say, our $100 software license consists of $18.70 for the value of the actual software and $81.30 for options on future maintenance and enhancements. [...] Therefore, the major difference in worldview between open source advocates and proprietary software license advocates is explainable as a differing opinion on the correct value of the volatility of maintenance and upgrade pricing. People who believe that the pricing on maintenance is stable and unlikely to change see greater intrinsic value in the software. People who fear that the pricing is subject to large fluctuations see no intrinsic value in the up-front license; stripped of the options, the license value approaches $0. For the open source movement, perhaps a better way to position the change that OSS is making is this: we're converting warrants on future maintenance and enhancements into options, which means that instead of having a sole supplier (warrants), we have created a third-party market (options) of these derivatives. How capitalistic is that? >> Laurent