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Article #773

VM Center pricing for VM/ESA

#773
From: Richard W Wiggins
Date: Sun, 02 Feb 1992 21:44
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>..... I think Systems Center is justified in asking
>for more money. IBM does it routinely everytime they write a new version:
>look at VM, MVS, CICS, etc., and demands a LOT more money for it. Systems
>Center is redesigning/rewriting huge pieces of product and adding lots of
>code to exploit ESA function.

If you believe in market economics, there is not "right" or "wrong" to
be judged here.  This is a price increase for the version of the product
that supports the current operating system.  How much SCI is spending in
development dollars on ESA support has very little to do with the amount
of the increase; they are charging what the market will bear.

There was quite a lobbying effort to urge SCI (then VM Software) not to
impose a surcharge for XA support.  That effort prevailed.  My guess is
the initial cost for them to provide XA support was greater than the
cost to provide ESA support will be.

My concern is that VM is competing against many other platforms these
days, and losing.  By raising the cost of moving to VM/ESA, SCI raises
an obstacle that may hold some sites back -- mine included.  SCI already
imposes group pricing which extracts more money in maintenance fees from
larger shops.  They may calculate that the larger shops can afford the
ESA surcharge on top of the group fees.  Instead the surcharge may be
the straw that breaks the camel's back in marginal cases.

/Rich Wiggins, Michigan State U
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Newsgroups: bit.listserv.l-vmctr
Date:         Sun, 2 Feb 1992 16:44:53 EST
Sender:       VMCENTER Components Discussion List <L-VMCTR@AKRONVM.BITNET>
From:         Richard W Wiggins <RWWMAINT@MSU.BITNET>
Subject:      VM Center pricing for VM/ESA
In-Reply-To:  Message of Fri, 31 Jan 1992 13:57:23 EST from <RKOGUT@BROWNVM>