Re: the "why" of tiered pricing (Was RE: Using Java in batch on z/OS?)



IMHO, the problem is not with tiered pricing, but the fact that mainframes
are getting more powerful. At any given time the top of the line mainframe
is about twice as powerful as the ones available just a couple of years
ago, so the cost of the software doubles.

z/OS.e costs about a tenth of z/OS, but if you look at the cost of running
z/OS.e on today's largest processor, it's about as much as it costs to run
z/OS on the largest processor that was available when z/OS.e was introduced.

The upward creep of software prices is the real problem, and I believe that
IBM needs to take drastic steps to reduce software costs. The small steps
that they have made in adjusting the MSU ratings of the newer processors
are inadequate.

Tom Marchant

On Sun, 4 Jun 2006 09:30:39 -0300, Shmuel Metz (Seymour J.) <shmuel+ibm-
main@xxxxxxxxxxx> wrote:

In <4482CF7B.7070901@xxxxxxxxxxxxxxxxxxx>, on 06/04/2006
at 02:18 PM, "R.S." <R.Skorupka@xxxxxxxxxxxxxxxxxxx> said:

So, I see you joined the party because of incomes, not because it is
more fair model, or other reason. Just - bigger isntallation means
more money to spend. Using this idea bigger datacenters should pay
more for electricity or tape carts (blank).

So should he price the small shops out of the market by setting the
price too high lose money on development by setting the price too low
or simply not develop the product so that both the big and the small
shops lose? Those are his choices.

Why not ?

They should pay more, but in practice they pay less because of bulk
discounts. Is that fair?

I don't want to judge it.

Then stop judging it.

Sometimes you invest, work hard, but you have no
incomes.

And when he finally does get an income you whine about it. He's not
exerting monopoly powers to extort money like some software vendors;
in fact, he's not big enough to do so. He's simply trying to set a
pricing model that allows him to make a reasonable profit on the time
and money he's invested.


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