1-2 vs unlimited licenses (Unix for a 386)

Bob Palowoda palowoda at fiver.UUCP
Mon Sep 4 12:15:18 AEST 1989

>From article <243 at van-bc.UUCP>, by sl at van-bc.UUCP (Stuart Lynne):
> In article <828 at cirrusl.UUCP> dhesi at cirrusl.UUCP (Rahul Dhesi) writes:
>>Let's assume that the company porting UNIX pays AT&T a royalty of $50
>>for a 1-2 user license and $150 for an unlimited user license.
>>If the 1-2 user system can be profitably sold for $x, then the
>>unlimited user system can be profitably sold for $x+100.
> Not necessarily. Part of what you are paying for is support and the amount
> of support is proportional to the number of users on a system. It is much
> more complicated to setup a Unix system to run well and be secure for say
> four to eight users than it is for your own personal workstation. This will
> generate more support calls for setup during that initial "free" support
> period.

  The price of support should NEVER NEVER NEVER be included in the cost
of the package. The is no way to judge what the quaility of support is
worth until it is needed. Just how in the real world can you come up
with a value for this.  On the other hand if SCO want's to sell a 600.00
product support package that is separate than it has value. If you 
want to talk about free support (software) than compare it to the GNU

> Also almost everyone I know realizes that every level of the distribution
> chain adds on it's own percentage. Personally I dislike multi-level
> distribution channels and *much* prefer to deal directly with the product
> manufacturer. In this day of instant communications this is becoming much
> easier and effective as well.

  Seems that this type of market would be limited by the manufacture all
the time.  I doubt that SCO has the resources to support a market that
grows to fast. Of coarse than if they do this all the competition will
take their customers away.

> The problem for company like SCO or ISC is that if they start giving
> discounts to people who deal directly with them their distributor channels
> start to get very upset. And up till now their distributor channels have
> been very effective at producing sales. So they tend to try and push
> customers to the distributors and resellers. 

  A dangerous trap for a customer. He/she buys from the distributor/reseller
and finds out that both of them tell them to call each other for support.
I'm not saying that distributors or resellers do not provide good support
but they tend not to budget that into the prices. I'm sure their is good 
one's. If they provide *free* support that works than they value add
to thier market. If anything I like the way SCO structured it pay for
the support but don't think of hideing it in the product resale value.
If SCO or ISC has a problem with their distributors complaining they 
can lower the price of their price to the distributors and their price
also. Problems soulved.  


Bob Palowoda                                *Home of Fiver BBS*  login: bbs
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