The flexibility and enablers available in the platform to speed software feature creation.
Since the buying market has expanded and segmented, each customer will perceive these values in different mixes. Segmentation of the market into SI, 1st tier service provider, 2nd tier service provider, and enterprise customer will complicate value pricing models. The value of the software to the customer will vary with each class of customer - resulting in different prices to each class. If each class/tier has a different pricing table, open publication of these list prices might not be wise. Similar reasoning may be causing software vendors to stop publishing prices. This is a rational argument for price secrecy, even if it is market obscuring.
Consider publishing prices for OSS/BSS cloud-based services!
Ending, I note that the most successful cloud service (salesforce.com) publishes its prices, and indeed acts like a consumer market when selling business software. And their prices have held up. So also, the prices of the cloud-hosting datacenters have held up; while also typically discounting heavily with increased volume. These successes should be a model for all cloud software companies to evaluate. Consider publishing prices for OSS/BSS cloud-based services! This is the answer that will quick start this market.
When we move from perpetual licensing to the new model of subscription-based cloud services, we should leave behind the old
Bottom Line
Buying from a subscription price model is actually a strategically positive move for a service provider. Right now, SPs are forced into buying from the big companies who have less cutting edge products because they know these will be around as upstarts mostly die. However, the subscription model promotes health for startups or new entrants by ensuring them a steady revenue stream - so the innovators will be around as long as you need them. This will bring new features into service providers faster. And if a SP sees a more attractive product, it is easier to change-out products as there is no capital to write down.
gambling with “cards close to the chest” model of doing business. Some have already noticed and made the leap. Tribold is now in extended beta for cloud-based versions of its product catalogue. Simon Muderack, VP at Tribold, embraces the new subscription model: “One of the great things about the subscription hosted model is the fact that when a customer asks you for a price quote, anyone in the company can provide it and you can stick to it. Our customers are actually shocked we are prepared to quote a price in a first meeting and, of course, the price is linear and understandable for both small and large providers.”
Pipeline
Publishing, Volume 6, Issue 9
