Re: DB/2 V7 on Z/os V1.11

-----Original Message-----
From: IBM Mainframe Discussion List On Behalf Of Andrew Rowley

Gerhard Postpischil wrote:

To me higher prices make sense only if you actually get more for
your
money - more and better results, better support, etc. So fees based
on
actual usage, with credit for spoiled runs, might make sense. Per
seat
or machine capacity does not reflect the value to the buyer; my cars
costs the same whether I drive alone or carry five passengers. If I
need
more, I step up to a minivan or commercial bus, but in no case would
the
dealer double the price to sell the same vehicle to a larger
company.

Most businesses find a way of charging more to the customers who can
afford more. Software, hardware, airlines, restaurants, certainly car
companies. The luxury model that costs double the base model doesn't
cost double to manufacture.

In the case of cars, there are some examples where features in the
base
model cost more to manufacture than the more advanced feature in the
luxury model, but are left to provide a point of differentiation with
the more expensive model. It wouldn't surprise me if the total cost of
manufacture/inventory etc. for a car company would be reduced if they
made a single model with all the luxury features, but they would then
lose the ability to segment their customers by how much they can pay.

You break the analogy when you compare two different end-products, which
in and of themselves justify different pricing. For software, consider
that IEFBR14 does exactly the same thing regardless what size machine
it's run on. Thus, the "problem" now is to justify charging, say, five
dollars to run IEFBR14 on a small machine; five thousand dollars to run
IEFBR14 on a mid-size machine and five million dollars to run IEFBR14 on
the largest machine.

-jc-

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