Standing in the Field @ Valley Forge

Standing in the Field

Notes from SJS Application Server Field Engineering

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Tuesday September 07, 2004
Multi-core software licensing

I'm working on a two-part post about the economics of software that builds on Bryan Catrill's recent post. Hopefully, I'll finish the first part tonight.

In the meantime, though, I saw this article on CNET. I've frequently asserted that multiple core technology is going to force the software industry to reconsider its licensing mechanisms. Unfortunately, the CNET article predicts that software vendors will adopt "per socket" pricing. Which I suppose is likely. But I'd like to see something a lot more innovative. Per employee pricing is a great start. But as a field engineer I'm frequently reminded that the per employee model doesn't work for every company.

Actually I was hoping to see "percentage of revenue" pricing. A lot of companies that might not be able to afford $100 per employee might be OK with a "$995 per million in revenue" pricing model. I originally didn't think that this model would be very popular, even though it makes a lot of sense from a fairness point of view. The downsides I see with this model are a lack of predictability and a bad perception of fairness: no one wants to be "punished" for having a good year. However, I did see at least one company using this model: the Eclipse project apparently charges its sponsors based on revenue.

More on this when I finish my post.

(2004-09-07 14:25:00.0) Permalink


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