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- Comments: Gated by NETNEWS@AUVM.AMERICAN.EDU
- Path: sparky!uunet!europa.asd.contel.com!paladin.american.edu!auvm!MSU.BITNET!RWWMAINT
- Message-ID: <IBM-HESC%92111021000430@PSUORVM.CC.PDX.EDU>
- Newsgroups: bit.listserv.ibm-hesc
- Date: Tue, 10 Nov 1992 23:48:35 EST
- Sender: "IBM Higher Education Consortium" <IBM-HESC@PSUORVM.BITNET>
- From: Richard W Wiggins <RWWMAINT@MSU.BITNET>
- Subject: Re: (no subject given)
- In-Reply-To: Message of Tue,
- 10 Nov 1992 23:02:24 EST from <BRYAN@WVNVM.WVNET.EDU>
- Lines: 35
-
- >> We believe that if anything, HESC pricing needs more granularity,
- >>not less.
- >
- >Hmm. This can quickly become a religious issue, and I can easily argue
- >either side of the question.....
- >
- >In its original incarnation, the HESC served (at least) two purposes:
- >1) for software an installation would have run anyway, it made the
- >software less expensive, and 2) it allowed an installation to run
- >software it would not otherwise have run. In either case, the
- >advantages to the installation were more and better software at less
- >cost, and for IBM more use of IBM hardware and software, with attendant
- >current revenue (but see below) and potential future revenue due to
- >faculty and students trained on IBM hardware and software.
-
- But this definitely cuts both ways. The number of HESC groups has grown
- significantly since we signed up, and the (relatively small) set of
- products we want has been neatly spread out among a number of HESC
- groups. And the prices for those groups have increased substantially in
- a few short years.
-
- Consequently, for those HESC groups that we make little use of, there's
- always pressure to get out -- even if one product is quite useful to us.
- And there's similar pressure not to acquire anything else from that
- group, 'cause we might save $12K a year if we just weaned ourself off
- that one thing we now use.
-
- So, yes, it'd be nice if HESC were one big grab bag with one low price.
- This would serve the goal you summarize -- to get sites to acquire those
- "marginal" products. But there's no evidence that IBM will abandon the
- "revenue foregone" model of pricing HESC products, and the current setup
- may encourage sites to bag HESC and big iron altogether rather than
- license the custom grab bag they need.
-
- /Rich Wiggins, Computer Lab, Michigan State U
-