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Re: Pricing Wars

From: Jim Conboy <>
Date: Tue, 13 Jun 2000 10:56:37 -0700
Message-Id: <>

Fascinating. Did you see that the way to join the 'big boys' is not to = offer a similarly reliable and robust product, but simply to charge as = much as the big boys? THAT'S what has been holding back SQL Server, it = doesn't cost enough!

>>> 06/13/00 10:42AM >>>
Hey, For those of you who have been as baffled by Oracle's Power Unit = pricing
scheme as I have been, give a read from InformationWeek:

Microsoft is changing the way it licenses server products to bring=20 its pricing in line with the expectations of E-businesses.=20 Starting with this fall's release of SQL Server 2000 database,=20 Microsoft will start charging customers by the number of=20 processors running its software, instead of according to the=20 number of end users.=20

The change, which will apply to five additional server products,=20 is designed to replace a complex licensing scheme and to match=20 more streamlined pricing practices of its database competitors.=20 Under the current system, companies buy from Microsoft resellers a=20 combination of server licenses, client-access licenses for named=20 users, and Internet-connector licenses for unnamed users, such as=20 shoppers on an E-commerce site or guests at a marketplace. More=20 confusing, the rights associated with each type of license differ=20 by product.

"Most customers were probably not getting it right," says Barry=20 Goffe, group manager for Windows DNA at Microsoft. "Customers=20 said, 'How do I know how many people are connecting to my Web=20 site?' And our answer was, 'Guess.' Customers never knew if they=20 were in compliance."

Under the new system, companies buying SQL Server 2000 and the=20 upcoming Application Center 2000, BizTalk Server 2000, Commerce=20 Server 2000, Host Integration Server 2000, and Internet Security=20 and Acceleration Server will pay a fixed rate per CPU, regardless=20 of the number of end users for an application. Companies will need=20 only to calculate the total number of CPUs running the platform=20 software and discontinue buying separate server, client-access,=20 and Internet-connector licenses, Goffe says.=20

"Microsoft is raising prices in the enterprise market," says=20 Terilyn Palanca, a director at Giga Information Group. That's OK,=20 since moving the price of its database closer to offerings from=20 Oracle and IBM will help ease customers' perception that SQL=20 Server is a departmental product, she says. "As you get into=20 large-scale deployments, pricing on a client-access basis would be=20 so onerous to calculate. If you want the recognition of an Oracle=20 or an IBM, you'd better be priced like that." - Aaron Ricadela


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