Vendor's Guide to Software Licensing and Pricing
Acknowledgment
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iii
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Foreword to Second Printing -- Updated November 2000
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iii
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Read Me First
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iv
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Who This Guide Is For
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What Type of Products Are Covered By This Guide
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What You Can Achieve By Using This Guide
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A Quick Overview of This Guide
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1. The Industry Ground Rules Are Changing
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1
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Vendors Caught in a Four-Way Squeeze
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Why Price Setting Has Become So Complicated
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2. Why Companies Must Turn to Flexible Licensing
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4
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One Size Pricing No Longer Fits All
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Customers Want Flexible Access to Applications
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License Managers for Flexibility, Better Access
and More Revenues
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3. Use License Managers for Software Control
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7
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License Managers Are An Opportunity to Charge
Premium Prices
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An Overview of How License Managers Work
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UNIX License Managers and PC-LAN Software Metering
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A More Detailed Look at License Managers
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Caveat Developer: "Buy" -- Don't Build -- a License
Manager
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4. A Simple Example of Per-User Pricing
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15
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Example of a LAN Application Used by a Workgroup
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Software Coverage with Per-User Licensing Versus
Per-Copy
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Evaluating the Costs - The Premium Paid for Flexibility
Is Worth It
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5. The Network and Client/Server Pricing Process
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20
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Two Reasons Why Client/Server Pricing Is Hard
to Do
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Seven Steps to Overcome Pricing Uncertainty
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Three Tips to Improve the Price-Setting Process
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Ten Point Implementation Checklist for Flexible
Licensing
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Don't Forget to Add Activities to New Product
Introduction Plans
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6. Pricing and Configuring a Client/Server Application:
An Example
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29
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Client/Server Product and Customer Background
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The Architecture: Choosing a Configuration
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Making Product Configuration, Pricing, and Sales
Rationale Consistent
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Typical Installation and Impact on Sales
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7. Other Useful Items
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34
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Keeping Count -- Of What?
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License Creation, Distribution, and Redistribution
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OEM Licensing with License Managers
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When Too Many Users Want Too Few Licenses
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Managing the Upgrade/Transition Program
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Futures: Offering New Product Options That Come
At No/Low Cost
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8. The Next Software Challenge
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Anticipate the Impact of Added Complexity
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A Cautionary Tale
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9. A Commercial Message: Pricing and Licensing Project
Assistance
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42
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APPENDIX A -- Client/Server Building Blocks
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43
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APPENDIX B -- A Useful Benchmark: The OURS Licensing
Principles
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46
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APPENDIX C -- A General Pricing Primer
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49
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Keep Pricing in Perspective
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Most Products Follow Common Pricing Strategies
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Non-Price Dimensions of Pricing
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Warning: Wrong Prices Can Cause Death Spiral
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The "Vision" Thing
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APPENDIX D -- Article: Keeping New Technology Products
On Track
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55
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Take Orders From Innovators vs. Make Money From
Mainstreamers
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Mainstreamers Want Product With a Capital 'P'
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If you want to order the Vendor's Guide to Software
Licensing and Pricing, you can order on-line through
our secure server or download an order form.
Order On-Line
vs. Download Order Form
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