> -----Original Message-----
> From: Info-vax [mailto:
info-vax...@info-vax.com] On Behalf Of
> Phillip Helbig (undress to reply)
Expensive up front life time licenses are typically considered "CAPEX"
costs on Cust books. CAPEX costs typically require high level VP approvals
which carries lots of internal visibility from a financials perspective.
Internally to vendors like HP, IBM, up front licensing works better
because the Eng groups focus on the licensing $'s revenue, while the
Support org focuses on the support revenues. Imho, it's one of the
challenges OpenVMS had over the years as decisions were made based
on licensing $'s - not the much larger support revenues. One would be
naïve to think these internal groups made decisions based on what was
best for the company vs. what was best for their own organization. This
is not unique to any company as I am sure the same internal culture is
in play at IBM, Microsoft and other large companies.
Annual subscription based licensing is considered part of OPEX expenses
required to maintain the IT Operations side of the business. Cust OPEX
expenses get buried in many lines of Operations budgets that are only
reviewed by the IT Operations mgmt. teams. If the OPS budget gets any
review, it is typically staffing related as that is almost always the biggest
slice of the OPS budget. Hence, OPS managers are much more able to
make their own decisions without getting senior VP approvals.
It's no coincidence that Microsoft came up with Office365 as a means to
get around all of the visibility associated with its high costs for MS Office
suite.
Annual subscriptions also provide the capability to get closer to your
Customers to build up their Cust DB as each annual renewal requires
an update to contact info, cust surveys, getting closer to Customer etc.
Red Hat's model is actually very practical (for RH). While still much less
than OpenVMS's current costs, the RH Linux pricing model is not as
cheap as one is led to believe. Especially given it is host based and the
current VM sprawl challenges plays very well into their annual
subscription model because Custs buy the high end subscription p/n's
so they do not have to worry about number of VM's.
Check out the RH pricing model: (assume 5 year license cycle for costs)
https://www.redhat.com/apps/store/server/rhel.html
In future, I suspect having a subscription "option" in parallel to the
one time licenses on X64 would be a very good move. Imho, since
OpenVMS will be on the same HW as commodity OS's, the annual
subscription pricing would need to be competitive (not necessarily
cheaper) with Linux/Windows offerings on the same HW.
Regards,
Kerry Main
Back to the Future IT Inc.
.. Learning from the past to plan the future
Kerry dot main at backtothefutureit dot com