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App Attitude: How Much Is That?: Page 2 of 2

Software vendors should look at how their hardware vendor peers price devices. Yes, purchasing hardware can be as complex: There's the amount of memory, size of the hard drive, the CPU and a multitude of peripherals. But hardware vendors generally list the prices and offer configuration tools to assist you in pricing your desired package. Surprisingly, there are market-leading vendors who do offer a straightforward pricing model: Information Builders' pricing is exceedingly simple and is similar to fixed-configuration switch pricing; FrontRange in the CRM market offers everything for a single price; and application servers from Sun Microsystems, Novell and Iona--though based on number of CPUs--have straightforward pricing with no hidden gotchas. And don't forget those enterprise-class applications available as open source with an extremely easy-to-follow pricing model--free (as in beer).

But ISVs get away with this nonsense because we let them. We accept these twisted mathematical formulas because that's what we're offered. The only way to force a change is to, well, force the change. Rather than worry about computing prices yourself, give vendors an exact list of what you need and have them respond with a "bottom line." Better yet, when they start hemming and hawing about giving you a quote, be firm in your request for a simple, single price. If they start pushing options and modules and costs, just shake your head no. Check if there's an alternative in the open-source or commercial community that offers a straightforward pricing model, and brandish those options like a large stick over your vendor's head. Only you can force the change necessary to bring sanity back to application pricing.

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